On the last day of expiry, the Nifty tanked by another 0.7% breaching the 200 DMA conclusively on a closing basis. All hope is not lost. Not as of yet. There is a strong possibility of Nifty finding support at 8175 or 8080, which if taken out may lead to a sharp decline further.
The Nifty opened weaker by 15 points at 8224.5 and clocked its day’s high immediately at 8229.4. Barely a few notches up. It reversed to touch an intraday low of 8144.75 however managed to recover some of its losses in the later part of the trade to close at 8181.5. Down by 0.7% or 58.25 points. The 8100 put and the 8400 call showed the highest open interest build up during the day. Market breadth stood firmly negative with 751 scrips declining and 605 advancing at the time of closing.
The Bank Nifty remained volatile throughout the trade, however, the bias was on the positive side. It opened at 18318.80 and managed to scrape a low of 18163.90 and a high of 18430.10 before finally closing at 18338.1. Marginally down by 0.2%. The 18000 put and the 18500 call continue to see the highest open interest build up.
In the cash markets, FII’s sold 3157.61 crores worth of stock whereas DII’s bought 2460.8 crores worth of stock. In the derivative market, FII’s sold 504.06 crores of Index futures and bought 1050.11 crores worth of Index options. In the Stock futures segment, FII’s sold 26.1797 crores worth of stock futures and sold 0.779968 crores of stock options.
Technical Analysis – Nifty & Bank Nifty
As mentioned above, Nifty has strong support at the current levels and within a 100-point band. If this support holds out, then we might see a beginning of the reversal.
On the other hand, if the downtrend continues, then we might see much lower levels. Market sentiment as of now is still in the favor of the bears and the now that the expiry action is behind us, we should see fresh trends emerge.
The Bank Nifty has shown some resistance at lower levels and is probably looking for a fresh move. If the rally sustains, then we can safely say that the counter is out of the correction.
The coming week will be an action packed week and interesting at the same time.