SBIN Archives

Today’s Moves

SBI Life Insurance (+3.97%) was NIFTY50’s top gainer. The stock extended gains for the third day in a row.

Tata Investment Corp (+20%) surged on account of value unlocking opportunity with Tata Technologies IPO. The public offer opens for subscription on November 22.

Varroc Engineering (+16.8%) surged on the back of strong volumes.

State Bank of India (-3.69%) was NIFTY50’s top loser.

RBL Bank (-7.7%), Aditya Birla Capital (-5.6%), SBI Card (-5.14%), and other banking and NBFC stocks crashed after the RBI tightened the norms for personal loans and credit cards.

Markets Ahead

Markets gave a strong closing on a weekly time frame. Looking at the daily timeframe, there is a retracement of 38% in the Fibonacci levels for Bank Nifty. However, it’s important to note that this retracement is for the uptrend from 42,100 levels. When examining the same retracement levels from 46,300 levels, it coincides with the 50% rejection zone. This suggests a bearish sentiment on an even larger time frame.

On the other hand, Nifty looks stronger than Bank Nifty, and no retracement was observed. So if Bank Nifty shows weakness, there is a possibility that Nifty might experience a slight dip as well.

Nifty: The key support levels for the index are at 19,600 and 19,500. If there’s a breakdown from 19,630, potential targets could be 19,500 and 19,400. On the other hand, the major resistance level to monitor is around 19,860. A breakout from there might set a target of 20,000.

Bank Nifty: A vital support level to monitor is around 43,400. A breakdown from this level could confirm short-term bearishness, with potential downside targets at 43,000 and 42,500. On the other hand, significant resistance is evident near 44,800, while the immediate resistance lies at 44,000. A breakout from there could cause the index to rise to 44,400 and 44,800.

The Indian stock market displayed a mixed performance today, marked by a decline in financial stocks as RBI tightened consumer lending rules. Meanwhile, global markets have been strong due to the easing U.S. interest rate outlook and a decline in oil prices.

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Post-Market Analysis for August 4, 2023:

NIFTY started the day at 19,462 with a gap-up of 81 points. Throughout the day, the index was trading between or stuck between yesterday’s high and today’s opening levels of 19,500 and 19,440, respectively. Nifty closed at 19,517, up by 135 points or 0.7%.

Nifty chart - Aug 3 post-market analysis

BANK NIFTY (BNF) started the day at 44,754 with a gap-up of 241 points. Initially, the index fell to yesterday’s closing price and support zone of 44,500 levels. Then, it gave a strong up-move till 45,100, fell 500 points back to 44,600 zones, and then took resistance back at 44,900-45,000 levels. BNF closed at 44,879, up by 366 points or 0.82%.

All indices except Nifty PSU Bank (-0.7%) and Nifty Auto (-0.33%) closed flat-to-green. Nifty IT (+1.5%) moved up the most.

Major Asian markets closed mixed. Germany’s DAX and UK’s FTSE100 are trading in the red, while France’s CAC40 is trading in the green.

Today’s Moves

Cipla (+3.7%) was NIFTY50’s top gainer. World’s largest private equity fund, Blackstone, is set to submit a non-binding bid to acquire the entire 33.47% promoter stake in Cipla.

Zomato (+10.07%) surged after posting its first-ever profit of ₹2 crore in Q1.

IT stocks Coforge (+2.58%), Wipro (+2.3%), TechM (+2.84%), LTIM (+1.46%), TCS (+1.28%) and others moved up with strength.

SBIN (-2.9%) was NIFTY50’s top loser. The bank’s net profit jumped 178% YoY to ₹16,884 crore; beating street estimates.

JM Financial (-7.12%) fell heavily after its Q1 number disappointed investors.

Mahanagar Gas (-5.75%) shares fell even as profit nearly doubled in Q1.

Markets Ahead

Markets are at important long-term support zones: 19,300 for Nifty and 44,200-500 zones in Bank Nifty. If there’s global positivity and a breakout on the upside, we can expect the markets to move further up!

Nifty: The important support zone for Nifty is clearly 19,300 (but the immediate support can be 19,400). The next resistance level to watch out for is 19,500 zones. A breakout from 19,520 levels can give us targets of 19,600 and 19,730 levels in the coming week. A breakdown can give us targets of 19,300 and then eventually 18,900 in the coming weeks.

Bank Nifty: The major support in Bank Nifty is a larger zone between 44,200-500. The important resistance will be 45,000. A breakdown from the support zone can give us a target of 43,000. A breakout on the upper side can give us targets of 45,300 and 45,750 in the coming week.

Markets had a bearish week. But if there’s a follow-up, it can turn into major bearishness for a few months. If support is taken at the levels mentioned above, the markets can bounce back!

Meanwhile, reports say the U.S. jobs report on Friday will help the Federal Reserve understand how its changes in monetary policy are affecting things. It could also tell the Fed if the U.S. economy is slowing down enough to skip another increase in interest rates.

How did this week go? Are you in net profit or loss? Let us know in the comments section of the marketfeed app.

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