Bulls on a roll

Nifty closed in green for the third consecutive session. Bulls on a roll!

The stock market climbed today as risk sentiment improved following the end-of-week rebound on Wall Street and the drop in oil prices. Bulls are on a roll, because of expectations of lowering inflation and less aggressive tightening by the central banks.

The S&P 500 rose over 3% on Friday and ended the week as one of the best performing week in the last 3 months.

Nifty opened with a gap up, gained for the third consecutive session and finished the day at 15832, up 132.80 points or 0.85 percent. It broke beyond the 15800 level, reaching an intraday high of 15927 and a low of 15815.

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. 

The advance-decline ratio was 2.89, and the market breadth was positive. On the other hand, the volatility index India Vix rose 2.21 percent to close at 21.01.

DAILY MARKET ACTION
Advancers – 1591
Decliners – 550
52Wk High – 20
52Wk Low – 26
High Band Hitters – 179
Low Band Hitters – 46
200d SMA – 17192
50d SMA – 16323
20d SMA – 15984

Nifty Top Gainers and Losers – Bulls on a roll

The top gainers on the Nifty 50 were ONGC (+3.31%), Coal India (+3.14%), L&T (+2.97%), HCL Technologies (+2.70%), and UPL (+2.67%).

Meanwhile, the top losers in the Nifty 50 were Eicher Motors (-1.46%), Apollo Hospitals (-1.23%), HDFC Life (-0.45%), Kotak Bank (-0.29%) and Britannia (-0.18%).

Sectors & Broader Indices

All sectoral indices ended the day in the green. IT, Metal, and Auto sectors led the today’s market action. Likewise, the broader indices followed the benchmarks. The Nifty Midcap 50 was up 1.05 percent, while the Nifty Small cap 50 was up 1.61 percent.

SECTORS – NOTABLE ACTION
IT 2.05%
METAL 1.52%
AUTO 0.89%

Looking Ahead

The Nifty closed above 15800, which had been the key resistance, and therefore shifted the bias to the positive. It also recorded a higher-high and a higher-low than the previous trading day’s data.

Daily Pivots

The Nifty trading range for tomorrow is 15790 to 15900.

Furthermore, the difference between the high and low price was 112, the smallest in the previous seven days, making it an NR7 day. Normally, a narrow range day with a positive close shows market optimism for the next one or two trading sessions.

Because there is no major economic news or data release in the upcoming week, the benchmark indices may remain volatile, particularly because of the monthly options expiry week. Given the geopolitical concerns, correction from the current levels can also happen.

Read previous -Daily Insights- here
Up, down and Up
Sell on Rise
Nifty Relief Rally

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