Banks Drag the Indices, But Somehow Nifty Holds 18000

NIFTY 18035/16-2-23

• The Open Price was +198 points compared to the 15-2 Open price which was a very bullish start to the day.

• made a low at 18000 which was a significant upward shift in the lower base and a bullish sign.

• The Close Price was -58 points from the open price which is a bearish sign.

• The Close - High difference was -98 points which is also a bearish sign.

• Nifty made a higher high, a higher low, and a higher close.

• The price action appears to be turning bullish.

BANK NIFTY 41631/16-2-23

• The Open Price was +251 points compared to the 15-2 Open price which was a bullish start to the day.

• made a low at 41521 which is an upward shift to the lower base and a bullish sign.

• The Close Price was -294 points from the open price and which is a bearish sign.

• The Close - High difference was -347 points which is also a bearish sign.

• Bank Nifty made a higher high, a higher low, and a lower close.

• The price action appears to be turning bullish.

Insights

• ended back in the green at 12.89. This was mainly due to the very choppy and negative moves in Bank Nifty during the day after hitting the resistance just below 42000.

• Whenever Bank Nifty has to cross a round number resistance, it does not so usually with ease and there are many who would be betting big to push it down. Today was no different so and that too was coupled with the weekly expiry day so a fight was on.

• Bank Nifty fell more than 450 points from the day\\'s high and did not recover much in fact, most of the damage was done in the last hour of trading with the low being hit in the last 30 minutes only to ensure that a red close happens in the index.

• Nifty has once again found it hard to cross the resistance band of 18120-150 and it fell from there in the last half an hour of intense selling, it made a low exactly at 18000.

• After several days and possibly weeks, Nifty OHLC was at 18000 and above. This is a positive sign.

• And today also, the retailers ended up as the net sellers as the FIIs and the DIIs have almost bought identical amounts of securities. This is becoming quite interesting for two reasons:

• For how long will both of them keep buying

• If both of them are buying, do the other categories of traders/investors have the power to drive the indices down？

• It would take some poor news flow to let the indices turn red after the opening tomorrow as the key players were the net buyers.

• At 1830h, SGX Nifty was -13 points.

FII-DII data

FII +1571 Crores

DII +1577 Crores

Net +3148 Crores

Support

17400-600 & 39800-40000

Resistance

18050-100-150-200 & 41800-42000-42200