Nifty Up, Bank Nifty Down! - Post-Market Analysis

NIFTY started the day flat at 19,784. Initially, Nifty rose to yesterday’s high of 19,830 levels, took rejection there, and experienced a sharp decline of nearly 120 points to the support level at 19,700. Then, it bounced back 120 points! Nifty closed at 19,811, up by 28 points or 0.14%.

BANK NIFTY (BNF) started the day flat at 43,663. The index made higher lows and fell nearly 460 points to 43,230 levels. Then, it made a sharp retracement of 245 points. BNF closed at 43,449, down by 239 points or 0.55%.

Nifty PSU Bank (-1.14%) fell the most, while Nifty IT (+0.74%) moved up the most.

Major Asian markets closed mixed. European markets are currently trading flat-to-green.

Today’s Moves

BPCL (+3.63%) was NIFTY50’s top gainer. The company’s board will meet on November 29 to consider interim dividend for FY24.

CG Power (+19.9%) surged after the company said it would set up an outsourced semiconductor assembly and test facility in India.

Share of Vardhman Textiles (+9.06%), RSMW (+8.8%), Donear Industries (+10.4%), and others were in demand due to analysts’ optimistic outlook for the textile industry.

IndusInd Bank (-2.11%) was NIFTY50’s top loser. The bank’s promoters have denied claims of raising funds by pledging their stake.

Markets Ahead

Both Nifty and Bank Nifty had their fair share of volatility today. While Nifty fell and recovered, Bank Nifty declined and recovered half of the fall— indicating a lack of strength in BNF when compared to Nifty. Even after these volatile moves, it’s surprising to note that India Vix has cooled down.

Nifty: The immediate level to monitor is 19,800 (where the maximum straddle Open Interest is concentrated). Depending on the price action from this level, the index could potentially move upward to 19,860 and 20,000 levels eventually.

Bank Nifty: The previous swing low at 43,200 levels could serve as immediate support. If there's a breakdown from 43,500, potential targets could be 44,000 and 43,500. On the other hand, 43,200 may act as a significant resistance. A breakout from there might lead to targets of 43,700 and 43,800.

Considering the weakness in BNF, taking advantage of sell-on-rise opportunities might be a smart approach until 43,500 is crossed. 19,800 holds significance for tomorrow's Nifty weekly expiry. Monitoring the price action around these levels is crucial, and planning a directional trade accordingly could be a strategic move.

Even though the US Federal Reserve adopted a cautious stance in its minutes and refrained from indicating a rate cut, the Indian market managed to recover from the day's correction and ended with small gains. Meanwhile, 4 out of 5 IPOs have been fully subscribed!

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