Indian markets opened up, tracking Asian markets. At the time of writing, NIFTY index was trading at ATH 26039, up 0.14 per cent since yesterday’s close.
The Japanese NIKKEI index was up 2.45 per cent during the morning session of trading. The US Dow Jones closed down 293 points overnight on profit taking.
The broader NIFTY 500 index was flat however witnessing negative breadth at the time of writing. There were 329 declines and only 169 advances showcasing divergence in the market with NIFTY trading at ATH.
NIFTY IT was up 0.7 per cent on short covering while Bank Nifty traded flat to positive.
NIFTY midcap index failed at 13300 mark and quoted at 13245 range. The index has been facing hurdle at 13300 range.
FII has net sellers past two days while DII have been net buyers providing breadth to the market. DII bought net 1779 cr yesterday.
ITC up 0.78 per cent, crosses Rs 6.5 lakh crore in market cap for the first time. ITC shares were traded at 521, at the time of writing.
China is considering injecting up to 1 trillion yuan (USD 142 billion) of capital into its biggest state banks to increase their capacity to support the struggling economy.
Over 50 drugs, including calcium and vitamin D3 supplements, anti-diabetes medications, and high blood pressure treatments, have failed quality tests conducted by India's drug regulator Drugs Standards Control Organisation.
NIFTY: The NIFTY index may find stiff resistance around 26050-26080 levels as one should be careful at longs at this overbought zone. The immediate support for the index is placed at 25880-870 range and a break below the same only may suggest some correction.
BANK NIFTY: The bank nifty has broken the ATH of 53357 and as long as its holds above the same, one can expect the short-term trend to be positive. The index has interim intraday support at 53650-700 range with immediate resistance at 54200-230 range. Breakout above the resistance may provide room for intraday longs.
NIFTY MIDCAP Select Index: The index has been a laggard and failed to catch the momentum despite NIFTY and bank NIFTY reached ATH. The index faces a stiff resistance at 13280-300 zone and if the market fails to hold above that then the index may correct back below 13200 mark. The immediate support zone is at 13180-200 range and breakout below the same may trigger selling momentum.
The report is being prepared by Bitupan Majumdar, an independent SEBI registered research analyst with registration code INH30006962. Please consult your financial advisor before taking investment decision.