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Nifty Falls Below 20,000! HDFC Bank Down 4% – Post-Market Analysis

NIFTY started the day at 19,980 with a gap-down of 152 points. It initially tried to move up, but 20,050 levels acted as good resistance. The index fell throughout the day to 19,880 levels. Nifty closed at 19,901, down by 231 points or 1.15%.

Nifty chart Sept 20 - post-market analysis | marketfeed

BANK NIFTY (BNF) started the day at 45,493 with a huge gap-down of 486 points. After opening, the index recovered nearly 300 points to 45,750 levels. But selling pressure kicked in, and the index fell nearly 470 points from the day’s high. BNF closed at 45,384, down by 595 points or 1.29%.

Bank Nifty chart Sept 20 - post-market analysis | marketfeed

All indices closed in red. Nifty Metal (-1.63%) and Nifty Finserv (-1.49%) fell the most.

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

Today’s Moves

PowerGrid (+2.27%) was NIFTY50’s top gainer. The stock hit an all-time high of ₹205.95 today.

Blue Star (+13.4%) surged to hit a record high of ₹946.8 after the company launched a qualified institutional placement (QIP) issue to raise ₹1,000 crore.

SJVN (+6.65%) moved up after the company and Power Finance Corp signed an agreement worth ₹1.18 lakh crore for renewable energy and thermal power projects.

HDFC Bank (-4.01%) was NIFTY50’s top loser. The bank has warned that its merger with HDFC would hit key financial metrics, including margins and bad loan ratios. Several brokerage firms have reduced target prices on the stock.

Heavyweight stock Reliance (–2.23%) fell sharply today. Around 1.9 crore shares (0.3% equity) of RIL changed hands in a block deal.

Public sector banks UCO Bank (-5.7%), IOB (-5.5%), Central Bank (-5.4%), and others closed deep in red.

Markets Ahead

After the huge rally, major indices have come under selling pressure. The Special Session of the Parliament happening this week could also add volatility to the markets.

Markets can be volatile to sideways in the coming days. So traders need to be cautious!

Nifty: The index closed below 20,000. So that level can act as a strong resistance. But the immediate resistance is near 19,950 levels. A breakout on the upside could make the index volatile and sideways. Meanwhile, the important support is near 19,800 levels. A breakdown below today’s low can give us targets of 19,800 and 19,730 as the second target.

Bank Nifty: The index is now currently taking support from 45,300 levels. A breakdown from here can take the index down to 45,150 and 45,000 eventually. On the other hand, a breakout from 45,460 can take the index to the 45,750 levels (with volatility).

Being Bank Nifty expiry, the option premiums and implied volatility (IV) didn’t cool down on the call option (CE) side till even the second half of the day. So option sellers might have been in some confusion there. But spikes on the put option (PE) side were also manageable. So it was a good day for both option buyers and sellers.

The US Federal Reserve will make its interest rate announcement today (11:30 PM IST), with prevailing expectations pointing towards a decision to maintain the current interest rates without any changes.

Nifty’s expiry tomorrow can be tricky. So watch out for the levels mentioned above and manage your risk. 

What levels are you watching out for expiry tomorrow? Let us know in the comments section of the marketfeed app.

Don’t forget to tune in to The Stock Market Show at 7 PM on our YouTube channel!

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Daily Market Feed Post Market Analysis

5th Bearish Weekly Closing in Nifty! – Post-Market Analysis

NIFTY started the day at 19,297 with a gap-down of 89 points (below the important support zone of 19,300). Throughout most of the day, the index consolidated in a 70-point range. But in the end, it gave a bearish closing— breaching the previous weekly low. Nifty closed at 19,265, down by 120 points or 0.62%.

Nifty chart August 25 - post-market analysis | marketfeed

BANK NIFTY (BNF) started the day at 44,276 with a gap-down of 220 points. The index initially gave a sharp fall to 44,000 levels, made a double bottom, and tried moving up. But the opening levels of 44,300 zone acted as resistance. BNF closed at 44,231, down by 264 points or 0.59%. 

Bank Nifty chart August 25 - post-market analysis | marketfeed

All indices closed in the red today. Nifty PSU Bank (-1.51%) and Nifty Realty (-1.31%) fell the most. 

Major Asian markets closed up to 2% in the red. European markets are currently trading in the green.

Today’s Moves

Bajaj Finserv (+2.4%) was NIFTY50’s top gainer. Nomura has double-upgraded the stock to ‘Buy’.

KFin Tech (+11.29%) surged on the back of strong volumes. Brokerage firm Jefferies has initiated coverage on the stock with a target price of ₹500.

Shares of Vodafone Idea (+9.4%) rallied amid reports that the struggling telecom operator has received term sheets from several potential investors. 

Dr Reddy’s Labs (-2.17%) was NIFTY50’s top loser.

Shoppers Stop (-12.7%) crashed after the company’s MD and CEO Venugopal Nair announced his resignation.

Markets Ahead

As discussed in the earlier post-market reports, the targets of 44,000 in Bank Nifty and 19,250 levels in Nifty are achieved, which gives us confirmation that indices have turned bearish.

Nifty has closed below a very important long-term support zone of 19,300. It has also breached the previous week’s low, where the index has taken support near 19,250 levels. And if Bank Nifty also joins the party, both indices may turn into near-term bearishness and continue to move further down.

Nifty: In the next trading session, bearishness can be confirmed if the index opens flat and crosses below today’s low of 19,230 levels. Look out for sell-on-rise opportunities! If there’s a huge gap down, the index can retrace and continue the fall again. If there’s a gap-up, Nifty can be choppy. So on the downside, the targets will be 19,000 and 18,900 levels. On the upside, the index has to give a closing above 19,300; so wait for confirmation.

Bank Nifty: The index took support from the round levels of 44,000. But the overall trend is bearish. So if the index falls below today’s low of 44,000 levels (after opening flat), the first target of 43,700 can be achieved. On the other hand, the index has to cross 44,350 levels for an up-move. 

But as the indices are bearish, if there’s a huge gap-up on gap-down after proper price action, look for sell-on-rise opportunities till 44,500 is crossed back again.

Global markets are awaiting comments from Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium (7:30 PM IST) to understand the potential direction of US monetary policy.

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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Daily Market Feed Post Market Analysis

Trending Monthly Expiry? – Post-Market Analysis

NIFTY started the day at 19,733 with a gap-up of 52 points (above the important resistance zone of 19,700). There was a good upside movement till 19,820 levels initially. After that, the index mostly consolidated within a 45-point range till 2:40 PM and then broke down from the consolidation. Nifty closed at 19,788, up by 97 points or 0.5%.

Nifty chart - July 26

BANK NIFTY (BNF) started the day at 45,935 with a gap-up of 90 points. Throughout the day, the index consolidation with a positive bias in a channel. The resistance level of 46,000 still acted strong, and there was no good breakout from there. BNF closed at 46,062, up by 217 points or 0.47%. 

Bank Nifty chart - July 26

All indices closed flat-to-green today. Nifty PSU Bank (+1.5%) and Nifty Realty (+1.19%) moved up the most. 

Major Asian markets closed mixed. European markets are currently trading in the red.

Today’s Moves

L&T (+3.3%) was NIFTY50’s top gainer. The stock hit a 52-week high of ₹2,673.85 on the back of strong Q1 results and buyback announcement.

Reliance (+1.6%) rose up to 3% after reports revealed that the Qatar Investment Authority (QIA) is in talks to buy a stake in Reliance Retail Ventures.

Tata Motors DVR (+12%) surged after Tata Motors decided to cancel the differential voting rights (DVRs) to further simplify the capital structure. Tata Motors will issue 7 ordinary shares for every 10 DVR shares held.

Bajaj Finance (-2.28%) was NIFTY50’s top loser. The company posted a 32.4% YoY rise in consolidated net profit to ₹3,437 crore for Q1 FY24, beating street estimates.

Can Fin Homes (-9.4%) fell sharply after the company reported that employees at one of its branches committed fraud of nearly ₹38.53 crore.

Markets Ahead

The Indian market is still looking weak, and today’s move can be just another retracement from the bottom levels for further fall to come.

Nifty: The major support now in Nifty will be 19,750 and the important resistance to watch out for is 19,840 levels. If there’s a breakdown from 19,750, we can expect the index to come down to 19,700 and then to 19,620 levels eventually. A breakout on the upside could give us targets of 19,880 and 19,900.

Bank Nifty: If today’s parallel channel is breached on the downside (below 46,000), the index can give us a target of 45,620 levels. A breakout on the upside can give us a target of 46,200 and 46,350.

Being a monthly expiry tomorrow, both indices can be volatile with directional moves. So trade cautiously and watch the levels mentioned above!

Meanwhile, the US Federal Reserve is expected to hike interest rates again at today’s Federal Open Market Committee (FOMC) meeting by 25 basis points to 5.5% (versus 5.25% earlier).

What levels are you watching out for expiry tomorrow? Let us know in the comments section of the marketfeed app.

Don’t forget to tune into The Stock Market Show at 7 PM on our YouTube channel!