Nifty plays catch-up

Nifty plays catch-up, closed higher amid weak sentiments.

Today the market started on a weak note and stayed volatile. Buying towards the end of the session helped in lifting the Nifty by 122 points. Is this the start of a new direction or just a catch-up at play?

The Nifty 50 was up 122 points or 0.74 percent before closing at 16478. Further, it recorded an intraday high of 16493 and a low of 16244. It closed near the day’s high price and stayed above the 20-day simple moving average.

The market breadth turned positive, and the advance-decline ratio was 1.09. Further, the volatility index was down by 3.51 percent and closed at 19.14.

NIFTY – DAILY MARKET ACTION
Advancers – 1098
Decliners – 1008
52Wk High – 18
52Wk Low – 44
High Band Hitters – 90
Low Band Hitters – 53
200d SMA – 17267
50d SMA – 16810
20d SMA – 16294

Top Gainers and Losers

Drreddy’s, BPCL, Reliance, Eicher Motors, and Bajaj Auto were the top gainers, gaining between 2 percent and 3 percent. 

TOP GAINERS
DRREDDY+3.00%
BPCL+2.81%
RELIANCE+2.64%
EICHERMOT+2.63%
BAJAJ-AUTO+2.12%

Meanwhile, Tata Steel, Shree Cement, Grasim, Tata Motors, and NTPC were the top losers on the Nifty 50, losing between 1 percent and 4 percent.
View the list of all the Nifty 50 contributors.

TOP LOSERS
TATASTEEL-4.18%
SHREECEM-1.96%
GRASIM-1.60%
TATAMOTORS-1.56%
NTPC-1.05%

Struggle for direction –Sectors & Broader Indices

Except for metals, all sectoral indices closed in green because of broad base buying towards the end of the session. Other notable gainers were Auto, financial services, media, and consumer durables.

Likewise, the broader indices followed the benchmarks. Nifty Midcap 50 was up 0.46 percent, and Small-cap 50 was up 0.17 percent.

Nifty Sectors – Notable Action
OIL & GAS +1.96%
PHARMA +1.20%
IT +0.98%
METAL -1.31%

Looking Ahead – struggle for direction

The top economic headline news waiting in queue is US inflation data scheduled for tomorrow, Friday.

As noted in an earlier blog, the first hurdle or resistance to cross is 16600, followed by the 16700 level. 16300 to 16550 is the Nifty trading range for tomorrow.

Daily Pivots

Read our previous -Daily Insights- here
Struggle for Direction
Risk-on or Risk-off?
Nifty above 16600. Buy or sell?

Is today’s action a start of a meaningful up move or just a catch-up at play? For it to continue, bulls need to provide a follow-through tomorrow. Otherwise, the struggle for the market direction might continue further.

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