Braking to go faster?

NiftyTrader • June 30, 2022

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Index	Price	Change	% Chg
NIFTY 50	15780.25	18.85	–0.12%
NIFTY BANK	33425.10	155.20	+0.47%
BSE SENSEX	53018.94	8.03	-0.02%

Daily closing price, change and % change of benchmark indices.

With no major swings in the last three trading sessions, is market braking to go faster?

On Thursday, the benchmark indices finished modestly lower. After gaining 0.85 percent on Monday, Nifty remained indecisive and made no major move on either side, rising 0.11 percent on Tuesday, falling 0.32 percent on Wednesday, and falling 0.12 percent today. It appears the market is braking to go faster, although in which direction remains to be seen.

In the global equities market, Wall Street experienced its worst first half-year performance in over 50 years. The bulls could not sustain the optimism generated by the oil price drop on Monday.

As noted in the weekly blog, the Nifty broke through the 15800 – 16800 level box on the downside, and 15800 is a significant resistance to overcome before any meaningful run. On the upside, we might again see selling around 15800 level.

Similarly, as noted earlier, the drop in oil prices undoubtedly helps to ease inflationary fears, but if the reduction in oil prices is because of concerns about economic slowdown, then it could also limit the current stock market rally.

Braking to go faster. Nifty daily data chart with lot of chop around 15800 level. — Nifty Daily data chart – lot of chop around 15800 level.

Today, the advance-decline ratio was 0.56, and the market breadth was negative. On the other hand, the volatility index India Vix marginally rose 0.27 percent to close at 21.84.

DAILY MARKET ACTION
Advancers – 755
Decliners – 1357
52Wk High – 19
52Wk Low – 34
High Band Hitters – 81
Low Band Hitters – 50
200d SMA – 17168
50d SMA – 16247
20d SMA – 15869

Nifty Top Gainers and Losers – Braking to go faster ?

The top gainers on the Nifty 50 were Axis Bank (+1.49%), SBI (+1.42%), Divi’s Laboratories (+1.30%), Britannia (+1.08%), and HDFC Life (+1.06%).

Meanwhile, the top losers in the Nifty 50 were Eicher Motors (-3.55%), Cipla (-3.55%), BPCL (-2.78%), JSW Steel (-2.58%), and Shree Cement (-2.50%).

Sectors & Broader Indices

Except for financial services, most of sectoral indices closed in the red. Today’s biggest losers were in metals, autos, and realty. Likewise, the broader indices followed the benchmarks. The Nifty Midcap 50 was down 0.85 percent, while the Nifty Small cap 50 was down 0.25 percent.

SECTORS – NOTABLE ACTION
FINANCIAL SERVICES +0.42%
METAL -1.99%
AUTO -1.26%
REALTY -1.19%

Looking Ahead

The Nifty has closed below 15800 for the last two trading days, which is now a significant barrier to overcome and stay above before launching an upward directional move. Despite making higher highs and higher lows today, the Nifty could not close in the green. Today’s shift could also be because of monthly options expiry and the end of the month.

Daily Pivots

S2	S1	R1	R2
15639	15709	15871	15961

Daily Nifty Pivots

The Nifty trading range for tomorrow is 15700 to 15870.

Furthermore, currently a lot of chop going on around the 15800 level. And the longer it continues, the more likely it may break on the downside.

The sellers approaching the upside rebound to sell on the rise. Given the geopolitical concerns, the sideway consolidation phase may last for some more time and the benchmark indices may remain volatile.

Read previous -Daily Insights- here
Bulls on a roll
Up, down and Up
Sell on Rise

This article is only for educational purposes and is not an investment advice.