Short Covering Takes Nifty Up! Nifty Realty Surges 4% - Post-Market Analysis

NIFTY started the day at 19,565 with a gap-up of 53 points. The index crossed the important resistance zone of 19,600 and gradually moved up throughout the day to 19,720 levels. Nifty closed at 19,689, up by 177 points or 0.91%.

BANK NIFTY (BNF) started the day at 44,027 with a gap-up of 161 points. The index consolidated within a 70-point range till 12 PM. Then, BNF witnessed a short covering rally of 400 points on the upside. BNF closed at 44,360, up by 473 points or 1.08%.

All indices closed well in the green. Nifty Realty (+4.01%), Nifty PSU Bank (+2.08%), and Nifty Metal (+2.05%) moved up the most.

Major Asian markets closed mixed (Japan’s Nikkei rose 2.4%). European markets are currently trading over 1% in the green.

Today’s Moves

Coal India (+5.3%) was NIFTY50’s top gainer. The stock hit a fresh 52-week high of ₹303.9 after brokerage firm Nuvama said the company could offer the triple benefits of volume growth, improved e-auction prices, and a possible all-time high dividend in the second half of FY24.

Nifty Realty hit a high of 612.25 (its highest level since 2009) amid strong business updates from real estate players for the Q2 FY24 and H1 FY24 period.

Prestige Estates (+8.5%), Sobha (+6.9%), Godrej Properties (+5.65%), and DLF (+3.86%) were top gainers in Nifty Realty.

IndusInd Bank (-0.56%) was NIFTY50’s top loser. 

Suzlon Energy (-4.7%) fell for the second consecutive session after the stock was placed on the Direct Stage IV Additional Surveillance Measures (ASM) framework.

Markets Ahead

Markets reversed with strength today, and we saw buying pressure across all indices. However, there could be a retracement until the hurdles of 19,800 in Nifty and 44,500 in Bank Nifty are crossed.

Nifty: The immediate resistance for Nifty is near the 19,720 level. A breakout from here could take the index to 20,000 levels (which is a larger target based on the inverted Head & Shoulder pattern). The first target on the upside can be 19,800. The support to watch out for is near the previous swing of 19,650. A breakdown may take the index down to 19,600 levels and consolidate.

Bank Nifty: The index is moving in a channel with rejection from 23% Fibonacci levels. So if 44,400 is breached, we can expect a target of 44,800 and 45,000 eventually. Meanwhile, a breakdown from 44,300 could take the index down to 44,100 and 44,000.

As per reports, Indian indices bounced back today as global conditions improved, including a decline in crude oil prices and reduced worries about U.S. interest rates.

Tomorrow is Bank Nifty expiry day! What levels will you be watching?

Did you get trapped in today’s short-covering market? Let us know in the comments section below!

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