On a monthly expiry day index finally managed to close in green note after three days losing streak. As nifty had a volatile trading session after an intraday low at 1593.70 levels, Nifty 50 erased its losses and closed the session at 16170.15 level with a gain of 144.35. However, Bank nifty closed the session at 35094.90 level with a gain of 755.40 points.
India VIX closed at 22.57 down by 10.72%. 37 stocks out of NIFTY 50 closed in Green which suggest broad based Buying. On the sectoral front, IT, metal and bank indices up 1-3 percent, while selling is seen in the oil & gas, power sector. Stocks like TATASTEEL, JSWSTEEL, APOLLOHOSP & SBIN were the top gainers, While UPL, DIVISLAB, ADANIPORTS & CIPLA were top losers. The Nifty has formed the Hammer candlestick pattern on a daily time frame which indicates reversal movement momentum for an upcoming session.
Moreover, the nifty has taken support from the previous horizontal line and showed back movement and crossing above 16410 level will be showing fresh buying in the counter. In addition, Nifty has given a closing above 9-Day Moving Average which indicates a bounce back moment in the counter. However, the momentum indicators MACD & Stochastic were trading with a positive crossover & reversed from oversold zone on a daily chart which suggest a northward journey in nifty. The Nifty may find Strong support around 15900 levels, while on the upside 16300 may act as an immediate hurdle. On the other hand, Bank nifty has support at 34400 levels while resistance at 35500 levels.
Palak Kothari
Research Associate
Choice Broking
Source: Choice India