Weekend Investing Daily Byte - 5 April 2024

Market Outlook

On April 4th, the Nifty made a wild move, as illustrated by the five-minute chart, showcasing the day’s volatility. The market opened with a gap up from yesterday’s close at 22,440 to 22,620, then within the first half an hour, it closed the gap and further dropped to 22,300, losing 300 points. By 11:00 a.m., much of this loss was recovered, and the market closed in the green at 22,540, reaching a new high. This roller coaster ride, especially on an expiry day, likely resulted in significant gains for short-term option buyers and losses for others.

Nifty Heatmap

HDFC Bank was a bright spot, up 3%, bringing much cheer to many as it’s a heavily owned stock. Conversely, Kotak Bank, ITC, and TCS, among others, saw declines. In the Nifty Next 50, Adani Power continued its steep climb, Dmart and Zomato also saw substantial gains, whereas LIC and Adani Power experienced declines. Sector-wise, real estate and private banks led the gains, while IT and infrastructure saw declines.

Sectoral Overview

In the Nifty Next 50 index, there was a predominance of green, with significant movements in Adani Power, Dmart, and Zomato, while LIC and Adani Power experienced drops. Sectorally, real estate and private banks were in the lead, while IT and infrastructures saw declines

Mid & Small Cap Performance

Mid-caps reached new highs, indicating strength in this market segment, and small caps showed signs of recovery, hinting at broader market strength.

Nifty Bank Overview

Nifty Bank is showing potential for new highs, suggesting possible leadership ahead in the market.

Nifty Next 50

Nifty Realty

Real estate index, after two days of hiatus is coming back. There is no softness in real estate at all. You can see that it is closing just below it’s all time high.

Nifty Private Bank Index

Nifty bank index, as I was mentioning yesterday, has a inverse head and shoulders pattern which has got broken out. So there could be a very good rally from here of at least if this patent target has to be made 1500-1600 points. So you could go to 25,600 somewhere like that. But this immediate gap is available here. So 24,800-900 could come very, very quickly. And HDFC bank probably is the stock that is going to fill that gap.