NIFTY Closes at a 3-Week High! Ready for FY24? - Post-Market Analysis
NIFTY started the day at 17,210 with a gap-up of 129 points. It opened above the 17,200 resistance and started moving up. So all short sellers started covering their positions, which resulted in massive short covering, and the index went to another important resistance zone of 17,400. NIFTY closed at 17,359, up by 279 points or 1.63%.
BANK NIFTY started the day at 40,231 with a gap-up of 321 points. After moving up initially, the index took resistance at 40,500. The index gradually moved up slowly to close at 40,608, up by 698 pts or 1.75%.
All sectoral indices closed in the green today. NIFTY IT (+2.45%), NIFTY Realty (+1.6%), NIFTY Finserv (+1.49%), and NIFTY FMCG (+1.06%) moved up the most.
Major Asian markets closed in the green. European markets are currently trading in the green.
Reliance (+4.2%) was NIFTY50’s top gainer. The company's creditors & shareholders will meet on May 2 to discuss the demerger of its financial services business.
IT stocks Mphasis (+4.5%), Coforge (+4.2%), Infosys (+3.2%), TCS (+2.1%), and TechM (+1.9%) surged today.
RVNL (+2.3%) secured an order from the Ministry of Railways for manufacturing Vande Bharat trains.
Apollo Hosp (-1.19%) was NIFTY50’s top loser.
Shipping Corp of India (-22.4%) crashed after the stock turned ex-date for the demerger of its non-shipping business into a separate entity.
Both Nifty and Bank Nifty gave a strong weekly closing. There was a morning star pattern in Nifty (on a weekly scale)! A morning star pattern is a sign of a bullish reversal.
But both indices are nearing a longer-term resistance line connecting the highs from December 2022.
If today’s highs are crossed and the resistance trendline is breached, we could see both indices moving up from there.
On the upper side, we can look for 17,500 (in NIFTY) and 40,900 (in BNF) as resistances. Supports to look for are 17,100 and 40,000.
It’s the end of the financial year! How did it go? Are you in net profit or loss in FY23? Let us know in the comments section of the marketfeed app!