Nifty Shows Power After Gap-Down Opening. Bank Nifty Breaks 200 EMA - Post Market Analysis


NIFTY opened the day at 16,187, tracking the weakness in US markets. Even though the index opened with a gap-down, it showed a pattern similar to yesterday (gap-up). The 16,320 level acted as a good resistance but it was broken towards the end. NIFTY closed the day at 16,340, up by 62 points or 0.38%. 

BANK NIFTY started the day at 35,113 and had momentum on the upper side. The index moved nearly 2% from day low to day high. Bank Nifty ended the day at 35,358, up by 35,720 points or 1.02%.

Nifty Realty (+2.5%), Nifty PSU Bank (+2.2%), Nifty Bank (+1%), Nifty Auto (+1%) moved the most.

Major Asian markets closed mixed. European markets are all trading currently flat.

Today’s Moves

Even after a gap down, Bank Nifty opened above the crucial level of 35k. This helped Axis Bank (+2.3%), IndusInd Bank (+2%), and SBIN (+1.5%) to feature in the Nifty 50 Top Gainers list. 

Telecom user data came out today. Reliance(+0.61%)’s Jio added net 31 lakh mobile phone users in May. Bharti Airtel (+1.4%) added a net of 10.3 lakh mobile phone users in May.

GAIL (-2.6%) fell along with MGL (-1.8%), IGL (-.0.83%) and ONGC (-1.5%). Russia, a supplier of GAIL  has defaulted on the supply of at least 5 cargoes or shiploads of LNG to India and 

M&M (+1.9%) showed strength after surpassing the 50,000 electric three-wheeler sales milestone.

Eicher Motors (+1.3%) hit fresh 52-week highs today, backed by strong rural demand.

Tube Investment (+12.3%) shot up after it acquired a majority stake in an EV startup named IPL Tech in a deal worth Rs 246 crores.

Polycab India (+4.5%) reported a 196% growth in Q1 consolidated profit at Rs 223 crores compared to Rs 75.3 crores last year.

TV18 Broadcast (-2.2%) fell after reporting a Q1 consolidated profit of Rs 60 crores compared to Rs 220 crores the previous quarter.

HDFC Life (-1.2%) posted a 21% YoY jump inQ1 standalone profit to Rs 365 crores.

Markets Ahead

The red closing of US markets yesterday resulted in a gap-down opening of Nifty. But the Indian market continued the bullishness for the third day in a row.

Watch out for 200 EMA near the 16,500 level in Nifty. At the same time, Bank Nifty has broken the 200 EMA resistance. We can remain positive till Nifty trades above 15,900.

The upmovement in Nifty Metal and other indices has removed a lot of negativity from the market while Nifty Auto hit a 52-week high today.

Analysts are expecting a 50 bps hike from the European Central Bank. Also, European Union has asked the member countries to cut gas usage to fight winter.

The strong recovery in Nifty PSU Bank is bringing back investor confidence. Which is your favourite one in the sector?

Let us know in the comments down below.

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