Nifty up slightly, but gains are still a long way off

Nifty up slightly, but gains are still a long way off. 

The Nifty 50 was volatile today, oscillating between positive and negative territory before closing 0.37 percent higher at 15350. The Nifty is up slightly, but gains are still a long way off. 

After six days of decline, the benchmark index closed in the green, with an intraday high of 15382 and a low of 15191. The BankNifty, on the other hand, fell 58 points, or 0.18 percent, to close at 32685.

Today, bulls appear to have attempted to push the index higher, but the road ahead is difficult. As the advance-decline ratio was just 0.21, the market breadth was negative.

Likewise, the broader indices were under pressure. The Nifty Midcap 50 dropped 1.76 percent, while the Small cap 50 dropped 2.83 percent. 

Furthermore, the Nifty is trading below its 20-day, 50-day, and 200-day simple moving averages.

The volatility index, on the other hand, fell by 1.51 percent to 22.41. FIIs were net sellers today also, and DII buying helped the market to stay in the green.

NIFTY – DAILY MARKET ACTION
Advancers – 383
Decliners – 1816
52Wk High – 16
52Wk Low – 489
High Band Hitters – 43
Low Band Hitters – 248
200d SMA – 17232
50d SMA – 16523
20d SMA – 16144

Top Gainers and Losers

The top gainers on the Nifty 50 were HDFC (+3.93%), Hindustan Unilever (+3.80%), Britannia (+3.13%), Wipro (+3.12%), and Asians paints (+3.01).

Meanwhile, the top losers in the Nifty 50 were ONGC (-4.84 percent), Tata Steel (-4.60 percent), UPL (-3.63 percent), Hindalco (-3.06 percent), and IndusInd Bank (-2.66 percent).

Sectors & Broader Indices

On the sectoral front, it was a mixed show today. The FMCG, IT, and Financial Services were the gainers. While, oil & gas, metal, media, and realty were the losers.

NIFTY SECTORS – NOTABLE ACTION
FMCG +1.80%
FINANCIAL SERVICES +0.96%
IT +0.87%
METAL -3.90%
OIL & GAS -3.26%
MEDIA -2.59%

Looking Ahead

The bulls are on the defensive because of the risks of missing the fiscal deficit target, high inflation, and possible downward revision to the GDP growth estimate.

Daily Pivots

The Nifty trading range for tomorrow is 15250 to 15450, with a negative bias.

As noted in yesterday’s blog, because of heavy selling during the week, the RSI and MACD indicators are reading low, showing the possibility of a relief rally next week.

Though the market was up today, you cannot call it a relief rally.

Because there is no major economic news or data release this week, indices may remain volatile for the rest of the week.

Read previous -Daily Insights- here
A sharp drop followed a brief uptick
Waiting for the US Fed meeting outcome
Nifty slides while waiting for US Fed news

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