Underperforming Bank Nifty, But Nifty Closes Above 18,000.- Post-Market Analysis 


NIFTY opened the day at 17,922 with a gap-up of 76 pts. Similar to previous days, the index saw profit booking after it crossed 18,000. It took good support from the 17,930 level and bounced back. Nifty closed the day at 18,053, up by 158 points or 0.89%.

BANK NIFTY started the day at 42,241 with a gap-up of 73 pts. The opening gains were followed by a fall of 500+ pts and the index broke 42,000. But just after hitting the 41,850 zones, it shot up and got back above 42,200. Bank Nifty closed the day at 42,235, up by 67 pts or 0.16%.

FIN NIFTY started the day at 18,531 with a gap-up of 24 pts. Being its expiry the index was volatile today, but respected the resistance above 18,610. Nifty closed the day at 18,604, up by 98 pts or 0.53%.

Nifty FMCG (+1.2%), Nifty IT (+0.80%), Nifty Realty (+1.1%) Nifty Media (-0.86%), and Nifty PSU Bank (-1.8%) closed with notable changes.

Major Asian Markets are closed mixed. European markets are trading in small red.

Today’s Moves

L&T (+3.5%) hit a fresh all-time high today and closed as the Nifty 50 Top Gainer. The rally is fueled by stable order inflows.

SBIN (-1.6%) closed as the Nifty 50 Top Loser.

IndusInd Bank (-0.72%) moved down in the first half and recovered later ahead of its Q3 results tomorrow.

Federal Bank (-1.6) saw profit booking after posting good results yesterday.

Reliance (+1.4%) closed in the green after Govt announced a cut in windfall taxes.

Other heavyweights, HDFC Bank (+1.4%) and HDFC (+1.7%) also gained.

Siemens (+0.06%) opened with a gap-up of 3% after it won Rs 26000 crore worth of contracts from the Ministry of Railways. But the stock couldn’t hold the gains.

Bank Of India (-4.5%) fell sharply after announcing its quarterly results. The Q3 standalone net profit came out at Rs 1151 crore vs Rs 1027 crore last year vs Rs 960 crore last quarter.

Kesoram Ind (-7.7%) and Angel One (-1.7%) closed in the red after posting Q3 results yesterday.

Recently listed- Paytm (-4.9%), Nykaa (-4.9%), and Zomato (-4.8%) closed as Nifty 500 Top Losers.

Markets Ahead

The market is showing good momentum nowadays and it looks like it is super tied up. Whenever the market tries to move down bulls use the 18,750-800 region to save the market. And bears are not letting Nifty trade well above 18,000. Too much pressure would lead to strong moves.

Tight range movements with momentum, crucial resistance trendline, and 18,000 psychological level. This is a strong recipe for a breakout or a breakdown and you can expect this very soon.

Nifty is trading well above the resistance trendline and 18,000. It has formed strong support in the 17,910-920 region. On the upper side, 18,140 and 18,220 levels can be watched.

Bank Nifty is beautifully respecting the support around 41,800 regions. And I do not see Bank Nifty below 41,500 this week.

In Fin Nifty, we can consider the 18,610-620 zone as a major one.

I would like to share my analysis here.

  • I couldn’t find any major reason for SBI’s fall today.
  • HDFC Bank posted good results during weekends.
  • HDFC Bank and HDFC were testing good resistance and shorting them might trigger a huge fall.
  • So I think, initially, big traders or institutions shorted SBI and ICICI Bank to bring Fin Nifty under 18,600 on its expiry day.
  • But shorting ICICI Bank heavily will bring Bank Nifty below its support. So the better option was SBI.

This is from my experience and we will have to watch the market in the coming days to validate this analysis.

I will be super happy if today’s 3 PM move was sponsored by Foreign Insitions. FII/DII data will give clarity on this and I hope FIIs to be net buyers today.

German December CPI came out at 8.6%, the lowest in four months. 

China's Q4 GDP (YoY) fell to 2.9% compared to 3.9% in Q3.

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