Nifty Towards ATH, Regains 20,000! - Post-Market Analysis

NIFTY started the day at 19,976 with a gap-up of 86 points. Even after the big gap up, the index continued moving up with a lot of strength to 20,100 levels— making a 150-point upward rally. Nifty closed at 20,096, up by 206 points or 1.04%.

BANK NIFTY (BNF) started the day at 44,081 with a gap-up of 201 points. After initial consolidation near 44,000 levels, the index gave a breakout and moved up with strength to 44,630 levels— making an intraday movement of more than 600 points. BNF closed at 44,566, up by 685 points or 1.56%.

All indices except Nifty Realty (-0.5%) and Nifty Media (-0.13%) closed in the green. Nifty Auto (+1.63%) moved up the most.

Major Asian markets closed mixed. European markets are currently trading flat-to-green.

Today’s Moves

Axis Bank (+3.82%) was NIFTY50’s top gainer. The bank has entered into a credit card point conversion partnership with Air India.

Aster DM Health (+18.8%) surged after the company said its subsidiary would sell its stake in Aster DM Healthcare FZC to Alpha GCC for ~₹8,125 crore).

Adani Total Gas (+13.7%) moved up with strength after the company launched its green hydrogen production and blending pilot in Ahmedabad.

Adani Ent (-1.1%) was NIFTY50’s top loser. 

Aether Industries (-8.41%) crashed after the company reported a fire at its Surat facility early that injured 25 people.

Markets Ahead

The Indian stock markets are looking strong, which is evident in today’s closing. Opting option buying trades could be a good strategy in the upcoming days, especially during market dips or corrections. The all-time high (ATH) in Nifty and Bank Nifty can be expected before the state election results kick in!

Nifty: The immediate support for the index is near the round levels of 20,000. The resistance will be near 20,200 (ATH levels). So if there’s a gap down or gap up tomorrow, there could be buying seen again after some retracement. On the other hand, a flat opening may lead to a continuation of the up-move.

Bank Nifty: The index is at an interesting breakout resistance level of 44,600, also forming a cup and handle pattern. A breakout could take the index up to 46,000 levels (as it’s still far from ATH when compared to Nifty). Meanwhile, the key support to watch is near 44,400 levels. A breakdown from there may take BNF down to 44,000 levels.

As per reports, the Indian stock markets are expected to see an inflow of around ₹30,000 crore from a major US pension fund from 2024 onwards, which could give a boost to local stocks!

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