Up, down and Up

Up, down and up. After losing 1.44 percent yesterday, the Nifty is up 0.93 percent today.

Today, the Nifty 50 reached a high of 15628.45, the bulls persisted and the Nifty 50 closed in positive territory at 15557, up 143 points or 0.93 percent. Similarly, the NiftyBank also witnessed buying, and it was up 0.88 percent today. The up, down and up move continues.

On the economic news front, falling Brent crude, natural gas prices, and palm oil prices are all positive because they reduce import dependency, improve company margins, and help save forex reserves. Positive economic news boosted the market sentiments today.

However, because of rising US bond yields and geopolitical concerns, the rupee fell to a new low against the dollar on Wednesday. The rupee fell to an all-time low against the dollar, closing at 78.38.

Further, Nifty recorded an intraday high of 15628 and a low of 15368 and stayed below the 20-day, 50-day and 200-day simple moving averages. It also recorded a higher-high and a lower-low than the previous day’s data.

Meanwhile, on Monday, Nifty was up +0.37%, Tuesday it was up +1.88%, Wednesday it was down -1.44% and today it is up +0.93 percent.

The advance-decline ratio was 2.15, and the market breadth was back to positive. Similarly, the volatility index fell by 1.97 percent to close at 20.88.

DAILY MARKET ACTION
Advancers – 1437
Decliners – 667
52Wk High – 6
52Wk Low – 84
High Band Hitters – 90
Low Band Hitters – 62
200d SMA – 17207
50d SMA – 16393
20d SMA – 16058

Nifty Top Gainers and Losers

The top gainers on the Nifty 50 were Maruti (+6.65%), Hero Motors (+6.08%), Eicher Motors (+5.87%), M&M (+4.49%), and Bajaj Auto (+3.97%).

Meanwhile, the top losers in the Nifty 50 were Reliance(-1.46%), Power Grid (-1.19%), Coal India (-1.12%), NTPC (-1.05%) and Grasim (-0.53%).

Sectors & Broader Indices

On the sectoral front, except for oil & gas, all sectoral indices closed in the green. Likewise, the broader indices followed the benchmarks. The Nifty Midcap 50 was up 1.31 percent, while the Nifty Small cap 50 was up 1.63 percent.

SECTORS – NOTABLE ACTION
AUTO 4.39%
IT 1.96%
REALTY 1.66%
OIL & GAS -0.43%

Looking Ahead – Sell on Rise

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

Daily Pivots

The Nifty trading range for tomorrow is 15400 to 15650, with a negative bias.

The Average Directional Index (ADX), a trend strength indicator, is 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.

Rising interest rates and inflation, as well as the rupee’s new lows and FII selling, are causing market volatility and large swings.

In the current market scenario, even minor positive news can cause large swings. This is also true in reverse, i.e., even minor negative news can cause massive selling. A simple trading strategy with proper stop loss appears to be the best bet. The range-bound consolidation may continue for some more time.

Read previous -Daily Insights- here
Sell on Rise
Nifty Relief Rally
Nifty up slightly, but gains are still a long way off

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