Sell on Rise

NiftyTrader • June 22, 2022

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Index	Price	Change	% Chg
NIFTY 50	15413.30	-225.50	–1.44%
NIFTY BANK	32845.30	–346.45	–1.04%
BSE SENSEX	51822.53	-709.54	-1.35%

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

Sell on the Rise. After gaining 1.88 percent yesterday, the Nifty is down 1.44 percent today.

Selling begets more selling. Today sellers came at yesterday’s upside bounce to sell on the rise. After two straight days of gains, the benchmark indices are back in the red today, following their global counterparts.

Nifty closed 1.44 percent down at 15413. It recorded an intraday high of 15565 and a low of 15386 and stayed below the 20-day, 50-day and 200-day simple moving averages. It also recorded a lower high and a lower low than the previous day’s data.

On Monday, Nifty was up +0.37%, Tuesday it was up +1.88%, and today Nifty is down -1.44%. The net gain over three days is only 0.78 percent.

Similarly, the Nifty Bank also witnessed selling. It was down 1.04 percent today.

Sell on rise. Nifty daily data chart with ADX indicator. — Daily data chart with Average Directional Index (ADX) indicator.

The advance-decline ratio was 0.42, and the market breadth was back to negative. Similarly, the volatility index rose marginally by 0.74 percent to 21.30.

DAILY MARKET ACTION
Advancers – 629
Decliners – 1515
52Wk High – 7
52Wk Low – 91
High Band Hitters – 70
Low Band Hitters – 94
200d SMA – 17216
50d SMA – 16435
20d SMA – 16089

Top Gainers and Losers

The top gainers on the Nifty 50 were BPCL (+1.26%), Hero Motors (+0.87%), Divi’s Laboratories (+0.43%), TCS (+0.42%), and Power Grid (+0.12%).

Meanwhile, the top losers in the Nifty 50 were UPL (-6.30%), Hindalco (-5.90%), Tata Steel (-5.42), JSW Steel (-4.30) and ONGC (-3.24%).

Sectors & Broader Indices

On the sectoral front, it was a sea of red as all sectoral indices closed in the red. Media, metal, oil & gas, and realty sectors witnessed heavy selling.

Likewise, the broader indices followed the benchmarks. The Nifty Midcap 50 fell 1.55 percent, while the Nifty Small cap 50 fell 1.08 percent.

SECTORS – NOTABLE ACTION
METAL -4.87%
MEDIA -3.50%
REALTY -2.19%

Looking Ahead – Sell on Rise

Previously, the Nifty broke through the 15800 – 16800 level box on the downside, and 15800 is now a significant resistance to overcome before any meaningful run.

Daily Pivots

S2	S1	R1	R2
15275	15344	15524	15634

Daily Nifty Pivots

The Nifty trading range for tomorrow is 15350 to 15550, with a negative bias. The Nifty has also formed a bearish candle, showing further weakness from current levels.

The Average Directional Index (ADX), a trend strength indicator, is back at 25, showing the strength of the current ongoing downward trend. Similarly, in the chart above, the trend line is downward, with a major resistance level around 15800.

Further, current market sentiments are sensitive and fragile, and even a minor development can cause significant volatility.

As noted in yesterday’s blog, because there is no major economic news or data this week, indices may remain volatile for the rest of the week or move up or down in response to analyst reports!

The range-bound consolidation may continue for some more time. Plenty of headwinds ahead and the goal post is a long way away.

Read previous -Daily Insights- here
Nifty Relief Rally
Nifty up slightly, but gains are still a long way off
A sharp drop followed a brief uptick

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