Peaceful Nifty Expiry. Markets at Breakout Levels! - Post-Market Analysis

NIFTY started the day flat at 19,828. After an initial up-move to 19,875 levels, the index fell sharply to the 19,800 support levels and consolidated the rest of the day. Nifty closed at 19,802, down by 9.85 points or 0.05%.

BANK NIFTY (BNF) started the day flat at 43,452. The index had a calm day following yesterday's volatility. It consolidated within a range of 100 points, roughly between 43,550 and 43,650. It can also be seen as a consolidation between the significant resistance at 43,700 and the support at 43,500. BNF closed at 43,577, up by 127 points or 0.29%.

All indices except Nifty Pharma (-1.57%) and Nifty IT (-0.59%) closed flat-to-green. Nifty Realty (+1.03%) moved up the most.

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

Today’s Moves

Hero MotoCorp (+4.52%) was NIFTY50’s top gainer. The stock has rallied over 15% in nine days after the company reported record festive sales.

Shares of EID Parry (+8.37%) surged after promoters divested a 2.27% stake in the company for ₹190 crore through an open market transaction.

HPCL (+6.94%) moved up with strength as crude oil prices dropped sharply after OPEC+ postponed its meeting to decide on oil output.

Honasa Consumer (Mamaearth) hit a 20% upper circuit after the company reported a 94% YoY growth in Q2 net profit.

Cipla (-7.93%) was NIFTY50’s top loser. The US Food & Drug Administration issued a letter that flagged data issues at the pharma company’s unit in Madhya Pradesh.

Tube Investments (-8.25%) fell sharply today.

Markets Ahead

Being the weekly expiry for Nifty, the index remained stable and maintained its upper levels. Bank Nifty also sustained its upper levels after recovering from yesterday. However, both Nifty and BNF need to overcome their respective major resistances to achieve a clear breakout.

Nifty: The index has immediate support near 19,800. If there's a breakdown from this level, the index may decline to 19,700 and 19,630 levels. Meanwhile, the resistance to monitor is approximately at 19,860. A breakout from this level might lead to targets of 20,000.

Bank Nifty: A major resistance to watch out for in BNF is 43,700. A breakout from this level could potentially lead to targets of 43,900 and the round level of 44,000. On the other hand, the immediate support lies near 43,500 levels. If there's a breakdown from there, the index may decline to 43,200 levels.

India VIX remains steady, and the markets are currently stable. Confirmation of a reversal and an uptrend may occur with a further breakout from key resistance levels. In the event of a positive market reversal, you could focus more on Bank Nifty as it’s further away from the all-time high (ATH) compared to Nifty. This suggests that BNF has the potential to move swiftly to cover the gap.

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