Indices Slide Further, Nifty Ends just above 17850

01/13/2023

2 minutes read

2023.01.13 01:49

MarketPulse

NIFTY 17858/11-1-23

The Open Price was -3 points than 11-1 Open price which was a flat start to the day.
made a low at 17761 which was a downward shift in the lower base and a bearish sign.
The Close Price was -62 points from the open price which is a bearish sign.
The Close – High difference was -87 points which is also a bearish sign.
Nifty made a lower high, a lower low, and a lower close.
The price action is bearish.

BANK NIFTY 42082/11-1-23

The Open Price was -166 points than 10-1 Open price which was a bearish start to the day.
made a low at 41742 which does not indicate anything material as it was only mildly above the low for 11-1.
The Close Price was -156 points from the open price and which is a bearish sign.
The Close – High difference was -261 points which is a very bearish sign.
Bank Nifty made a higher high, a higher low, and a lower close.
The overall sentiment is not bullish.

Insights

ended the day in the red but not before hitting 16+ levels in the AM session..
The expiry day drama was played out during most of the day as the indices were very volatile and choppy.
It was very clear that the indices were unable to stay comfortably at higher levels and each time an upmove was made, it was met with even greater selling pressure.
The price action of the indices does not give a good indication for the market sentiment but that is what generally happens when the indices are contemplating a turn around.
Bank Nifty made an unusual higher high, a mildly higher low but ended up with a lower close if 158 points. It appears that Bank Nifty may have just formed the buttom for now.
In comparison, Nifty broke the low of 10-1 and registered a lower low and struggled to stay above 17800 and finally managed to close above 17850.
The FIIs kept selling has come down significantly and the DIIs have bought more than what has been sold by the FIIs.
Even though the sentiment appears to be non-bullush, keeping in view what has been stated above, a bounce in the indices is more likely and Nifty may attempt to close above or just below 18000 tomorrow.
This is subject to the lower levels remaining intact. Nifty will also be guided by the moves in Infosys (NS:) as the results have been released earlier in the evening.

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