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Sellers Trapped! Bullish Monthly Expiry? - Post-Market Analysis
NIFTY started with a gap-down but recovered strongly, closing up by 51 points, while BANK NIFTY also saw a significant rally after an initial fall. Key resistance and support levels are identified for Nifty and Bank Nifty ahead of monthly expiry.
Key takeaways
- NIFTY started the day with a gap-down but recovered nearly 175 points from its low to close at 19,716, up by 51 points.
- BANK NIFTY experienced a sharp fall of 300 points initially but then rallied 500 points to close at 44,588, down by 36 points.
- L&T was NIFTY50’s top gainer, with its ₹10,000 crore share buyback plan subscribed over 7 times.
- Vedanta fell sharply to a 14-month low after Moody's downgraded its parent company's corporate family rating.
- For monthly expiry, a gap-down could lead to further falls, while a gap-up could result in volatility and bullishness.
NIFTY started the day at 19,637 with a gap-down of 27 points. The index initially fell nearly 100 points till 19,550 levels in an hour. Then, the markets reversed with strength, recovering nearly 175 points from the day’s low to 19,730 levels. Nifty closed at 19,716, up by 51 points or 0.26%.
BANK NIFTY (BNF) started the day at 44,465 with a gap-down of 160 points. After consolidating initially, the index gave a sharp fall of 300 points to 44,180 levels. Then, similar to Nifty, BNF gave a strong upward rally of 500 points till 44,700 levels. BNF closed at 44,588, down by 36 points or 0.08%.
All other indices except Nifty Finserv (-0.13%) closed flat-to-green. Nifty Pharma (+1.19%) moved up the most.
Major Asian markets closed mixed. European markets are currently trading flat-to-red.
Today’s Moves
L&T (+1.8%) was NIFTY50’s top gainer. The company’s ₹10,000 crore share buyback plan was subscribed over 7 times.
ITI Ltd (+7.13%) moved up on the back of strong volumes. The stock has rallied nearly 70% in September after the company said it successfully developed branded laptops and micro PCs under the name 'Smaash'.
Senco Gold (+14%) surged after Ambit Capital said it’s bullish on the company’s expansion prospects in East India.
Titan Company (-1.47%) was NIFTY50’s top loser.
Vedanta (-6.7%) fell sharply to hit a 14-month low after ratings agency Moody's downgraded the corporate family rating of parent Vedanta Resources Ltd.
Markets Ahead
Markets reversed with a lot of strength from the lows (with help from Reliance and ITC). But it’s currently taking resistance from important levels (23% Fibonacci levels from the top).
Nifty: The important resistance to watch out for is 19,740, which is also the 23% rejection level. A breakout from this level could give us targets of 19,790 and 19,840. Meanwhile, immediate support for Nifty is near 19,680 levels. A breakdown from there can give us targets of 19,630 and 19,560.
Bank Nifty: The index faces an important resistance near 44,700 levels, which is also the 23% fib level. A breakout from 44,700 could give us targets of 44,800 and 44,900. The immediate support is near 44,500 round levels, and a breakdown from here will give us targets of 44,320 and 44,200.
Being monthly expiry tomorrow, if there is a gap-down, major indices could fall further down. If there’s a gap-up, they could be volatile and bullish.
As per reports, concerns about global interest rates and high crude oil prices are being balanced by positive domestic factors like expected economic growth and the potential for good corporate earnings.
What levels are you watching out for monthly expiry tomorrow? Let us know in the comments section!
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Frequently asked questions
What was NIFTY's closing position today?
NIFTY closed at 19,716, up by 51 points or 0.26%.
Which stock was NIFTY50's top gainer today?
L&T (+1.8%) was NIFTY50’s top gainer.
What caused Vedanta's sharp fall?
Vedanta fell sharply after ratings agency Moody's downgraded the corporate family rating of parent Vedanta Resources Ltd.
Written by
Cherian VargheseRelated reads
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