Sellers Trapped! Nifty Hits ATH Again! - Post-Market Analysis
NIFTY started the day at 19,493 with a gap-up of 80 points. The index initially came down till the support zone of 19,430 (which was also near yesterday’s closing price). Then, Nifty consolidated with a positive bias till 3 PM, after which it gave an amazing rally on the upside to hit a fresh all-time high of 19,595.35 (mostly powered by IT stocks). Nifty closed at 19,564, up by 150 points or 0.78%.
BANK NIFTY (BNF) started the day at 44,860 with a gap-up of 195 points. Similar to Nifty, Bank Nifty fell to 44,600 zones (which was also yesterday’s closing price). The index consolidated for a while, and in the second half, it gave a false breakdown. Then, Bank Nifty moved up with a lot of strength post 3 PM to near the day’s high of 44,900 levels. BNF closed at 44,819, up by 154 points or 0.35%.
All indices closed in the green today! Nifty IT surged 4.45%. Nifty Media (+3.94%), Nifty Metal (+1.4%), and Nifty Realty (+1.16%) also moved up with strength.
Major Asian markets closed mixed. Germany’s DAX is currently trading in the red, while UK’s FTSE100 and France’s CAC40 are in the green.
TCS (+5.2%) was NIFTY50’s top gainer. The shares have gained over 7% since the IT major posted its Q1 results on Wednesday.
Tech stocks TechM (+4.54%), INFY (+4.46%), HCL Tech (+3.8%), and Wipro (+2.7%) powered the markets today!
GMR Power & Urban Infra (+7.9%) jumped up to 20% after its step-down subsidiary won an order to install smart metres in Uttar Pradesh.
JBM Auto (+11.4%) hits a 52-week high of ₹1,539.6 as the company won an order to supply 5,000 electric buses.
HDFC Life (-1.55%) was NIFTY50’s top loser.
Orient Electric (-6.7%) fell sharply after the company’s MD & CEO Rajan Gupta resigned.
Nifty and Bank Nifty have been under selling pressure for the last four trading sessions. Every uptick was being sold into, and everyone expected the same to happen today. But to everyone’s surprise, both indices gave a good up-move, trapping all the bears near the support levels.
The weekly candle of Nifty is looking very bullish when compared with Bank Nifty.
Nifty: On a weekly basis, Nifty has strong support near the 19,350-60 zones. As it’s at an ATH near the 19,600 round levels, that can be watched as immediate resistance.
For Nifty to turn bearish, the support zone mentioned above has to be breached. And if the rally continues, the index can move even higher with psychological level targets of 19,650 and 19,700 eventually.
Bank Nifty: The index is not as strong as Nifty, and has been mostly moving in a range between 45,100 and 44,600. So if there’s a breakout on the upside in the coming week, we can expect a target of 45,500 and then eventually the all-time high near 45,650 levels. A breakdown can bring the index down to 44,200 zones.
With Nifty on a rally and Bank Nifty moving in a range this week, we could maybe see a good movement in BNF next week.
Meanwhile, India’s Wholesale Price Index (WPI)-based inflation stood at -4.12% in June vs -3.48% in May. This is the lowest since October 2015.
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