Has the Nifty finally reached breaking point
The Nifty ended Tuesday with a one-point gain. Just a single point. After a 250-point rally in Nifty Bank. On paper, this marks the 14th conservative day of gains for the index. But it raises the question, has the Nifty finally reached its peak on the upside, at least for now?
On Tuesday, the Nifty traded within an 80-point range. Not once did it show any signs of moving higher from the previous record high it has made. It opened above 25,300, but that was all. However, on Tuesday, Nifty Bank was the top performer of the day. Due to the Nifty Financial Services weekly expiry, the index saw a sudden surge in the final few minutes of Tuesday’s trading session. This 250-point rise not only took the index past 51,500 but also brought it to the verge of reaching 51,700 on the upside. On Tuesday Nifty 50’s September futures added 0.8% or 1.4 lakh shares in Open Interest. They are now trading at a premium of 74.7 points, up from 61.7 points earlier. On the other hand, Nifty Bank’s September futures shed 0.1% or 2,070 shares in Open Interest. Nifty 50’s put- Call Ratio has increased from 1.18 to 1.2. When it comes to the banking index, it’s not a breakout. 51,960 is an important resistance level. Once that’s broken, we might see new record highs around 54,000. So, keep an eye on 51,960. The lift is mainly coming from ICICI Bank, but beyond that, most of the other banks need more action. These are the stocks of Wednesday’s trading session:
Defence Stock: The Defence Acquisition Council has approved 10 capital acquisition proposals worth ₹1.45 crore.
IEX: Total Volumes in August increased by 35.8% to 12,040 million units. Renewable Energy certificates increased by 737.5% year-on-year to 2,116 million units.
