Nifty and Bank Nifty Closes Above Resistances. But Hurdles Incoming! - Post Market Analysis

NIFTY opened the day flat at 17,401, and the resistance at the 17,450-500 region was easily broken. NIFTY closed the day at 17,525, up by 127 points or 0.73%. 

BANK NIFTY started the day at 37,847 and took support at 37,700. The index moved 1.65% from the day low. Bank Nifty ended the day at 38,237, up by 316 points or 0.84%.

Nifty Metal (+1.2%) closed as the only index with more than 1% change. Nifty Bank (+0.84%), Nifty Auto (+0.97%), and Nifty Media (+0.80%) also moved up.

Major Asian markets closed mixed. European markets are trading in the green.

Today’s Moves

Coal India (+3.3%) saw good buying ahead of Q1 results on Wednesday and closed as the Nifty 50 Top Gainer.

M&M (+3.3%) continued the rally after the post-result profit booking on Friday. The company said that the demand for its cars is exceeding the production capacity.

BPCL (-3.2%) and SBIN (-2%) closed as Nifty 50 Top Loser after posting results. Hind Petro (-4.6%) also moved down for the same reason.

Adani Ports (-1%) posted a less than estimated Q1 consolidated net profit at Rs 1070 crore vs an estimate of Rs 1550 crore.

Nifty 50 heavyweights Reliance (+1.3%), HDFC Bank (+2.4%), HDFC (+1.6%) and Axis Bank (+2.3%) moved up today. 

Reports said that IDFC First Bank (+2.8%), Yes Bank (-3.9%), and Indian Bank (-0.29%) have put their loans to SpiceJet (-4.8%) in the high-risk category.

HFCL (+9.8%) skyrocketed after entering into an agreement with Qualcomm Technologies.

Paytm (+6.4%) closed in the green as the Q1 revenue rose 89% compared to the previous year.

Markets Ahead

Nifty has cleared the strong resistance around 17,480-500. Looking into the current situation, it is possible to break 17,550 resistance also.

The next major hurdle lies in the long-term downtrend line. We can expect strong resistance there, mostly above 17,710. But, we can expect strength in the market if Nifty continues to trade above 17,150.

The weather around Bank Nifty is more clear now— the index took support at 37,700 and closed above 38,200.

We did not see major profit booking in SBI as expected, so keeping the stock on the watchlist.

Tomorrow will be a holiday for our market on account of Muharram. And this brings more importance to how global markets close today and tomorrow.

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