Terrific start for bulls; Nifty Realty soars with Indiabulls Real Estate in limelight!
Market Update at 9:30 AM: The key benchmark indices, which were reeling under selling pressure in the last couple of trading sessions, reopened after a day of break amid Bakri-Eid holiday on Thursday. Besides, bulls made a terrific start to Thursday as Sensex and Nifty gained 0.75 per cent, each. Meanwhile, India VIX has plunged more than 6 per cent.
All the sectoral indices were trading in green with Nifty Realty leading from the front. The stock of Indiabulls Real Estate is on song in early deals as it has jumped more than 5 per cent.
Just like the rains in Mumbai region are unstoppable, the bears on D-Street also seem to be unstoppable. Nifty logged the third straight day of losses on Tuesday as it ended down by 0.76 per cent and recorded its worst closing since June 9, 2021.
Nifty Midcap 100 and Nifty Smallcap 100 plummeted 1.44 per cent and 1.41 per cent, respectively thereby, underperforming the frontline gauge. Among the sectoral indices, barring Nifty FMCG, all other indices ended in red with Nifty Realty and Nifty Media plunging more than 2.5 per cent each.
Fund flow activity from FIIs was disappointing as they were net sellers to the tune of Rs 2,834.96 crore while DIIs indulged in buying activity as they were net buyers to the tune of Rs 873.14 crore. Interestingly, in the last five trading sessions, a divergent trend has been witnessed between the FIIs & DIIs as for the last five trading sessions, FIIs have been net sellers while DIIs have been net buyers in each of the last five trading sessions.
The price action of the day has formed a bearish candle with a lower shadow on the daily chart and Nifty has continued its trend of lower high & lower lows formation for the second consecutive trading session.
After opening lower, Nifty remained under selling pressure throughout the session, weighed down by across-the-board selling. At one point in the day, Nifty had slipped below the 15,600 mark but it took support near its important moving average of 50-DMA. It took support around 50-DMA while on a closing basis, it managed to defend the 15,600 mark.
Nifty has formed back-to-back unfilled opening downside gaps and along with this, it has breached its crucial support as defined by the rising trendline, which was formed by joining June & July swing lows. Though the scenario looks scary yet if we dig deeper, Nifty has not yet retraced 23.6 per cent of the upmove, which was seen from April low of 14,151.40. The 23.6 per cent retracement level is placed at 15,535 while the 50-DMA stands around 15,570. Moreover, Nifty is hovering around the lower end of Bollinger Band, and, in recent times, whenever Nifty slid down towards the lower end of Bollinger Band, we have seen a pullback in the index.