HDFC Bank Tanks, Drags Bank Nifty & Nifty Ends at a New ATHNifty 24324/+0.09%/5-7-24
The Open Price was -89 (83) points compared to the closing price of the previous session, giving a negative start to the day.
Nifty made a low at 24169 )24281) which is a downward shift to the lower base and is not a positive sign .
The Close Price was 111 (-68) as compared to the open price which is a positive sign.
The Close - High difference was 39 (99) points which is also a positive sign - Nifty jumped up sharply in the last half an hour.
Nifty’s range for the day was 194 (120) points.
Nifty made a lower high, a lower low, and a higher close.
The price action is bullish.
Bank Nifty 52660/-0.83%/5-7-24
The Open Price was 392 (268) points compared to the cloning price of the previous session giving a positive start to the day.
Bank Nifty made a low at 52290 (52816) which is a significant downward shift to the lower base and a negative sign.
The Close Price was 100 (-254) points from the open price which is a positive sign.
The Close - High difference was 158 (254) points and this mainly due to the fact that the high was hit at the open itself and there was late recovery in the index.
Bank Nifty’s range for the day was 528 (542) points.
Bank Nifty made a lower high, a lower low, and a lower close.
The price action is tentatively bullish.
Insights for 5-7-24
India Vix ended at 12.70/-1.24%.
Nifty Lifters 38 Reliance, SBI, and LT.
Nifty Draggers 52 HDFC Bank, Titan, and M&M.
Bank Nifty Lifters 324 SBI, Kotak Bank, and Axis Bank.
Bank Nifty Draggers 832 HDFC Bank
In yesterday’s post I had mentioned that holding on to 52800 on a closing basis is very crucial for Bank Nifty. And the session’s high was 52817.
Bank Nifty was under extreme pressure as HDFC Bank tanked almost 5% and contributed over 800 points fall in the index.
Bank Nifty was able to recover in the last half an hour but it was not enough to take it above 52800.
On the other hand, Nifty made a sharp recovery in the last half an hour of price action and ended at an All Time High close.
This was possible mainly on account of short-covering in Infosys and HDFC Bank.
The indices were volatile, but the India Vix is not reflecting the same and it ended with a decline.
FIIs bought 1241 Crs
DIIs Sold 1651 Crs
Net -410 Crs
What May Happen Next Week
The next week may start seeing Q1 results getting released so the indices are likely to swing in line with what the traders/investors interpret of the numbers. For Bank Nifty, 52800 is a key resistance level and unless it opens gap up, and HDFC Bank does not fall further, the index may stage a recovery towards 53000.
Nifty has shown resilience around 24200 and it appears that there are a good number of buyers around that level. So as long as it trades above 24200-250, the up move is more likely to continue.
