Nifty Above 17,700 Ahead of Inflation Data Tmrw - Post-Market Analysis
NIFTY started the day at 17,704 with a gap-up of 80 points. The index moved up to 17,748 and then fell 90+ points to the day-low at 17,655. Then, it made a strong up-move post 1 PM. NIFTY closed at 17,722, up by 98 points or 0.56%.
BANK NIFTY started the day at 41,232 with a gap-up of 397 points. After forming a big red candle at opening, BNF moved up and mostly consolidated (with a positive bias) throughout the day. The index closed at 41,366, up by 531 pts or 1.3%.
NIFTY Metal (+1.76%) and NIFTY PSU Bank (+1.6%) moved up the most. NIFTY IT (-1.2%) and NIFTY Realty (-0.28%) were the only indices that closed in the red.
Major Asian markets closed mixed. European markets are currently trading in the green.
Kotak Bank (+4.9%) was NIFTY50’s top gainer. The reduction of FII stake in the private bank has raised expectations of inflows of up to $690 million. (As per reports, index provider MSCI may increase the weight of the stock in its May review).
JSW Steel (+3.6%) posted a 13% growth in consolidated crude steel production at 6.58 million tonnes (MT) in Q4.
ITC (+1.9%) hit a fresh 52-week high today. The stock is up nearly 5% in four trading sessions.
Bajaj Auto (+2.8%) moved up after it took over Triumph India's sales & marketing operations.
IT stocks witnessed selling pressure today ahead of TCS kickstarting the quarterly earnings (Q4 FY23) season on Wednesday. HCL Tech (-1.4%), INFY (-1.5%), and TCS (-1.5%) were NIFTY50’s top losers.
Today’s market movement was similar to yesterday's, with no major directions in Nifty. If today’s high is broken tomorrow, without a gap-up opening, there can be upside movements. I will be watching the 17,800-820 zone in Nifty.
Bank Nifty had a proper direction but without strong momentum. The next two trading days of this week might be very important as Bank Nifty tests its trendline resistance. I am expecting a strong fight between bulls and bears around that zone and it might lead to range-bound movements/consolidation.
Considering the movements of this week, there can be an intraday profit booking in Bank Nifty tomorrow. Also, I am still expecting a breakout from HDFC this week itself.
India’s CPI data (5:30 PM) and US CPI data (6 PM) will be out tomorrow. These two pieces of data, along with Fed meeting minutes at 11:30 PM, might affect our expiry if anything unexpected comes out.
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