Bulls Indecisive

Bulls Indecisive

The bulls were indecisive and failed to capitalize on yesterday’s gains. The benchmark indices started on a weak note and mostly remained in the red throughout the day before closing down.

After three consecutive days of gains, the market closed in the red, ahead of the GDP data release for the fourth quarter and provisional annual estimates for the year 2021-22.

The Nifty 50 was down 77 points or 0.46 per cent before closing at 16585. Further, it recorded an intraday high of 16691 and a low of 16522. The Nifty opened with a gap down, made a lower high, and closed near the day’s open price.

The market breadth was positive, and the advance-decline ratio was 1.14. Further, the volatility index was higher by 2.48 per cent and closed at 20.48. After a short stint of buying yesterday, the FIIs were back to net sellers today.

NIFTY – DAILY MARKET ACTION
Advancers – 1129
Decliners – 991
52Wk High – 22
52Wk Low – 35
High Band Hitters – 135
Low Band Hitters – 72
200d SMA – 17265
50d SMA – 16910
20d SMA – 16231

Top Gainers and Losers

ONGC, NTPC, Mahindra & Mahindra, Coal India, and Tata consumer products were the top gainers on the Nifty 50, gaining between 3 per cent and 5 per cent.

TOP GAINERS
ONGC +5.21%
NTPC +4.44%
M&M +3.37%
COALINDIA +3.29%
TATACONSUM +3.18%

Meanwhile Kotak Bank, Sun Pharma, HDFC, Reliance and Shree Cement were the tops losers on the Nifty 50, losing between 1.5 per cent and 3.5 per cent.
View the list of all the Nifty 50 contributors.

TOP LOSERS
KOTAKBANK -3.48%
SUNPHARMA -2.61%
HDFC -1.81%
RELIANCE –1.55%
SHREECEM -1.48%

Sectors & Broader Indices

On the sectoral front, it was a mixed show today. Realty, Media, Metal, and Auto were the gainers. Meanwhile, financial services, consumer durables, oil & gas, pharma, and IT were the losers.
The broader indices outperformed the benchmarks. Nifty Midcap 50 was up 0.33 per cent, and Small-cap 50 was up 1.33 per cent.

Nifty Sectors – Notable Action
Realty +2.01%
Media +1.54%
Metal +1.31%
PSU Bank -1.03%
Finanical Services -0.92%
Private Bank -0.77%

Looking Ahead – Nifty Bulls

Today’s market action could be because of the risk-off mode ahead of the release of Q4 GDP data. Expectations are for a slower growth. Further, the rise in crude prices, as it touched $120 per barrel because of tight supply, contributed to the nervousness in the market.

Daily Pivots

Read our previous -Daily Insights- here
Bulls Repose Faith
Are Nifty bulls out of the bullpen?
Nifty Back in Green

The candlestick pattern of today’s market action shows nervousness and bearishness ahead. 16500 to 16700 is the Nifty trading range for tomorrow.

As noted in yesterday’s blog, hopefully, the sell-on rally is not back, as otherwise, the earlier bull action would go futile because of profit booking at higher levels.

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