Something Big is on the Cards! - Post-Market Analysis
NIFTY opened the day at 18,118, with a gap-up of 90 points. After the good opening, the index fell some pts and took support from 18,060. From there it shot up to the day high at 18,162, but it was followed by another fall. Nifty closed the day at 18,118, up by 90 points or 0.50%.
BANK NIFTY started the day at 42,891 with a gap-up of 384 pts. After the morning moves, the index fell and took support from Friday’s high near 42,720. Bank Nifty closed the day at 42,821, up by 314 pts or 0.74%.
FIN NIFTY started the day at 18,897 with a gap-up of 124 pts. The index made two bounces from the 18,840 level but ended near the opening levels. Fin Nifty closed the day at 18,887 up by 115 pts or 0.61%.
Most of the sectoral indices closed in the green. Nifty Auto (+0.83%), Nifty FMCG (+0.83%), Nifty IT (+1.8%), and Nifty Pharma (+0.89%) moved up.
Major Asian Markets closed with gains. China and Hong Market markets are closed today. European markets are trading flat.
HUL (+1.8%) recovered some pts lost on Friday and closed as Nifty 50 Top Gainer.
Ultratech Cements (-4.5%) closed as the Nifty 50 Top Loser after posting a 38% YoY drop in profits in Q3.
Other cement companies- Shree Cem (-5.6%), India Cement (-3.4%), Dalmia Cement (-3.9%), Ambuja Cement (-3.2%), JK Cement (-3%), Grasim (-1.4%), ACC (-1.3%), and Ramco Cements (-2.1%) also fell.
Nifty IT stocks- Coforge (+6.2%), Persistent (+6.2%), LTTS (+2.8%), TechM (+1.8%), Mphasis (+1.7%), TCS (+1.5%) and Infy (+1.4%) gained well.
Tata Elxsi (+4.3%) and Intellect (+4.2%) also moved up.
Reliance (-0.51%), ICICI Bank (+0.16%), and Kotak Bank (+1.1%) posted their Q3 results on Friday and weekends.
Canara Bank (+1.2%) and Karur Vyasa Bank (+3.1%) posted their quarterly results today.
Axis Bank (+0.23%)’s Q3 profits jumped 62% YoY to Rs 5853 crore from Rs 3614 crore last year. The estimate was Rs 5472 crore.
Today Nifty formed an intraday trendline resistance and it might get respected tomorrow also.
Nifty’s 18,020 and 18,060 are acting as major levels for many days, they should be watched along with 18,165, 18,183, 18,204, and 18,250 resistances.
Bank Nifty traded very well above 42,700 and even if there is a small fall, the 42,400-500 zones would provide good support.
‘Opening gains, moving up and good selling’- this is the trend in Fin Nifty for the last many days. During this situation, market participants get impatient and huge directional movements happen.
Major banks and Reliance published their Q3 results, but they did not provide momentum to the market.
HDFC and HDFC Bank are moving up, but buying volumes are comparatively moving down. Institutions would use these stocks to manage their positions.
Thursday is a holiday, so the monthly and weekly expiry will be this Wednesday. Many people will try to square off their positions. Also, goods selling or buying will happen to get a fortune from the Union budget.
Considering the above facts, I expect a breakout/breakout from the 17,750-18,250 zone before the budget announcement, but it could be temporary.
Is Nifty respecting SGX Nifty nowadays for the opening? What do you think? Share your answers in the comments section of the marketfeed app.