Bank Nifty Under Pressure, Nifty Stays Afloat

O 17094.95

H 17291.75

L 17091.15

C 17222.75/-22.90/-0.13%

BANK NIFTY EOD 35527.38/-620/-1.72%

SGX NIFTY at 1835h 17236/+14

INDIA VIX 23.93/-3.31%

FII DII data +343 Crores – FIIs were net Sellers which has been the regular feature except for the recent small net buying that they have resorted to. 

NIFTY MOVES AS SEEN ON THE CHARTS

• opened with a significant gap down and then immediately recovered and by 1130h, made a recovery of almost 200 points.
• It then fell consistently and retested 17150 levels and then consolidated for some time and soon after opened, it rallied close to 100 points and then the usual expiry choppiness brought it down.
• In the process, Nifty has registered a lower high and a lower low. 

NIFTY TOP 5 CONTRIBUTORS

Leaders 54

Laggards 82

Net -28

BANK NIFTY TOP 3 CONTRIBUTORS

Leaders 03

Laggards 536

Net -533

POSITIVES

Reliance (NS:), Infosys (NS:), & TCS (NS:) yet again helped steady Nifty which was the reason why Nifty was able to end above 17200 despite intense selling in . 

NEGATIVES

Bank Nifty is under severe selling pressure. 

TRADING INSIGHTS & OBSERVATIONS

• Bank Nifty underperformed Nifty in a significant manner. Whereas on an EOD basis, Nifty was down only 0.13%, Bank Nifty was down by 1.72%. Had the banks not been under severe pressure, Nifty would have ended in the green.

• Today was yet another day when the positive global cues were ignored by the indices. They remained red when the US Futures were red but failed to turn green when the US Futures were in green and even the FTSE was in the green. 

• Bank Nifty was unable to move on either side and it appeared that the moves were programmed to pocket the premium as India Vix also declined.

• Bank Nifty was down 620 points on an EOD basis of which 536 were contributed by HDFC Bank (NS:), ICICI Bank (NS:), and Kotak Mahindra Bank Ltd (NS:). 

• Even though the reading shows a drop in volatility, there was intense choppiness in the market today on account of the weekly expiry. As usual, there were many 5-minute candles that broke the back of the option premium in one single sharp down move. 

• Reliance has been showing great resilience and has been the savior for Nifty. It is now approaching 2600 levels and it would be an interesting price action at play to see if it holds on to the momentum and stay above 2600 or it yet again fails to do so.

Please watch this video to know more about it: https://youtu.be/pNNHY5h4S9Q

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