Doji Warning in Bank Nifty! ITC at 5-Year High - Post Market Analysis


NIFTY opened the day at 17,598, with a gap up of 55 points. We have been witnessing the power of resistance above 17,600 for many months. The index fell 1% from the opening high and took support near yesterday's low at 17,476. It then recovered from there, tested 17,600 zones again, but failed. NIFTY closed the day flat at 17,539, down by 3 points or 0.02%. 

BANK NIFTY started the day at 39,422 with a gap-up of 121 points. It was a volatile opening for the index and made a 5-min candle of 220 points size and without a body. After the initial fall, the index took multiple supports from 39,200 and traded within the opening range. Bank Nifty ended the day at 39,301 down by 235 points or 0.60%.

All the indices closed mixed without major changes. Nifty PSU Bank (-0.67%), Nifty Media (+0.50%), and Nifty Finserv (+0.51%) moved the most.

Major Asian markets closed flat to red. European markets are trading in the green.

Today’s Moves

ITC (+1.7%) hit a 5-year high and closed as the Nifty 50 Top Gainer. Its market cap reached Rs 4 lakh crore mark today after 5 years as the stock rose 50% in 6 months.

Oil-related stocks including BPCL (-2.8%), ONGC (-1.4%), Reliance (-1.1%), OIL (-0.8%), Hind Petro (-3%) closed in the red, because of the windfall tax hike, fall in crude oil price and demand fear due China’s Covid restrictions.

Adani Ports (+1.6%) closed in the green after it reported YoY growth of 18% in August cargo volumes at 29.3 million metric tonnes (MMT).

Adani Ent (+3.7%) also closed in the green after it replaced Shree Cement (-2.3%) in Nifty 50. The change will come into effect from the end of this month.

Nifty Auto stocks- Hero MotoCorp (-1.7%), Maruti (-1.1%), Tata Motors (-1.1%) and Bajaj Auto (-1.1%) saw profit booking after reporting August month sales.

HBL Power (+9.7%) shot up after securing an order worth Rs 673 crore from Indian railways.

Tanla Platforms (+2.9%) has decided to consider share buyback on Sept 8.

GMR Infra (+2.6%) closed in the green after its subsidiary GMR Airports plans to divest its stake in GMR-Megawide Cebu Airport Corporation.

Markets Ahead

We have been talking about the resistance above 17,600 for many days. Today it was tested again, but the resistance is very strong. One good thing is that the index did not fall below yesterday’s low with 17,450-500 acing as good support.

Bank Nifty has formed a Doji day candle and it indicates indecision in the market. The index has formed a small support trendline on the hourly candle chart and if it is broken, 38,800 can be considered as the next major support.

We may see more profit booking in the coming days and setting alerts on major levels is very important, considering the volatile consolidation. 

Reliance formed a bearish weekly candle, down by 3%.

Nifty IT closed as the worst performing sector of the week, down by more than 3%.

Nifty Midcap 100 made its 11th consecutive weekly green candle. 

When did Nifty 50 make the highest percentage single-day gain ever in its history? And what was the reason? Share your thoughts in the comments down below! Check the Signal tab of marketfeed app tomorrow for more details on this. 

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