Nifty Misses All-Time High! Bearishness Throughout - Post-Market Analysis
NIFTY started the day at 18,873 with a gap-up of 47 points. Right from the beginning, the index was under selling pressure from 18,880 levels. Sellers were very active and defended the all-time high (ATH). Nifty tried taking support from Friday’s consolidation zone of 18,760 but eventually broke down. Nifty closed at 18,755, down by 70 points or 0.37%.
BANK NIFTY started the day at 44,015 with a gap-up of 77 points. Similar to Nifty, Bank Nifty was under selling pressure since market opening. The index couldn’t cross yesterday’s high and came down with a lot of strength to 43,650 zones. Then, it consolidated and again broke down to 43,500 levels. BNF closed at 43,633, down by 304 points or 0.69%.
All indices except Nifty PSU Bank (+0.7%), Nifty IT (+0.4%), and Nifty Pharma (+0.17%) closed in red today. Nifty Media (-0.89%) fell the most.
Major Asian markets closed up to 1% in the red. European markets are currently trading in the red. The US markets will remain shut today on account of Juneteenth Day.
HDFC Life (+2.79%) was NIFTY50’s top gainer. The stock is up over 7% in a week after robust commentary by the company’s top management.
Mangalore Refinery & Petrochemicals (+9.61%) jumped on the back of strong volumes.
The Bajaj twins— Bajaj Finance (+2.54%) and Bajaj Finserv (+2.2%) moved up today.
Adani Ent (-4.3%) was NIFTY50’s top loser. All Adani Groups stocks closed in the red after Adani Ent signed a share purchase agreement to acquire Star Enterprises-owned Trainman on Friday.
Rajesh Exports (-8.7%) has declined over 45% from its 52-week high made in Feb. The company continues to face scrutiny over an omission in submitting a crucial report alongside its audited financial results for FY23.
Nifty and Bank Nifty are both in crucial support zones. Nifty gave closing below the trendline it has been following. If today’s low of 18,720 zones is breached, we can expect the index to fall till 18,675 and eventually to 18,600 zones as well.
Bank Nifty is at a much more dangerous level— near the bottom of the long-term consolidation zone (43,450 zones), which has been tested multiple times and has acted as good support. If the index goes below this support zone, Bank Nifty can fall to 43,000 and 42,800 zones in the coming week.
If Both Nifty and Bank Nifty rise tomorrow, then Bank Nifty will be back in our range and Nifty will slowly continue its up-move towards the all-time high (ATH).
With volatility today ahead of FIN NIFTY expiry, the overall bearishness may continue if lows/important support levels are broken tomorrow. So for non-directional traders, looking at price action and delaying put entry can be beneficial.
What levels are you watching out for FIN NIFTY expiry tomorrow? Let us know in the comments section of the marketfeed app.