IndexPriceChange% Chg
NIFTY 5016520.85180.30+1.10%
NIFTY BANK35972.10251.75+0.70%
BSE SENSEX55397.53629.91+1.15%
Daily closing price, change and % change of benchmark indices.

Windfall Tax rolled back. Nifty above 16500. What’s next?

Windfall tax on export of crude oil rolled back. Benchmark indices gained over 1% led by gains in shares of oil companies as the Government rolled back the windfall tax on crude exports. Read more about Windfall tax here. For the third day in a row, benchmark indices closed in the green with Nifty crossing 16500.

Reliance up 2.7 percent, ONGC rose 3.6 percent, Oil India gained 5.5 percent, and Vedanta gained 6.1 percent.

Furthermore, as mentioned in an earlier blog, long bullish candle formation, positive market breadth, moderate volatility, FIIs being net buyers, and the market trading above the 20-day and 50-day simple moving averages are all required ingredients for the Nifty to reach the 16500-16600 level in the near term.

Windfall tax on export of crude oil rolled back. Nifty above 16500. What’s next?
Daily data chart – Windfall tax rolled back kicks off rally in market.

The advance-decline ratio was 1.37 today, while market breadth was positive. The volatility index India Vix, on the other hand, decreased 2.20 percent to settle at 16.82. This is the lowest reading of volatility index since April. Furthermore, FIIs were net buyers for the third straight day.

Advancers – 1228
Decliners 899
52Wk High
52Wk Low 13
High Band Hitters
Low Band Hitters 26
200d SMA 17061
50d SMA – 16036
20d SMA – 15981

Nifty Top Gainers and LosersWindfall Tax

The top gainers were ONGC (+3.71%), Tech Mahindra (+3.60%), TCS (+2.82%), HCL Technologies (+2.79%), and Reliance (+2.54%).

Meanwhile, the top losers were HDFC Life (-1.99%), M&M (-1.82%), Sun Pharmaceutical (-1.13%), Eicher Motors (-1.07%), and Kotak Bank (-0.81%).

Nifty Sectors & Broader Indices

On the sectoral front, most of sectoral indices closed in the green. IT, FMCG, metal, and oil & gas were the biggest gainers, while media and auto were the biggest losers, registering marginal losses. The broader indices followed the benchmarks. The Nifty Midcap 50 was up 0.19 percent, while the Small cap 50 was up 1.19 percent.

IT +2.93%
FMCG +1.13%
METAL +1.12%
MEDIA -0.43%
AUTO -0.22%
REALTY -0.17%

Looking Ahead

Today the market shrug off concerns about inflation pressure on margins, inflation impact because of GST on pre-packed food items, strong dollar which offsets the falling commodity prices.

Daily Pivots

Daily Nifty Pivots

There is firm support at 16200 level and the Nifty trading range for tomorrow is 16480 to 16580.

As the Nifty approaches 16600, we may see some volatility around this level as sellers might emerge to sell on the rise.

Read previous -Daily Insights- here
Nifty below 16000
Market at a standstill
DII keeps momentum going

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

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