On Monday morning, the Nifty index witnessed a mixed trading session with significant fluctuations in heavyweight stocks. Reliance Industries started the day with a notable decline of 2.48%. However, it managed to recover from its initial lows as the trading session progressed. Conversely, HDFC Bank, ICICI Bank and Axis Bank stocks played a crucial role in maintaining the overall market indices in a slightly positive territory.
The observed market behavior can be attributed to a strategic index management approach, commonly employed when one of the major heavyweight stocks is anticipated to open with a substantial gap down or gap up. This tactic aims to balance the overall index performance amidst the volatility caused by individual heavyweight components.
Nifty Daily Charts
Nifty Futures on the Daily charts remains with a positive trend despite the recent over-bought levels
Nifty Hourly Chart
Nifty Hourly Charts indicate that oversold levels could bring the market from a pure uptrend to a sideways to uptrend situation and markets might start entering into the consolidation range between 19700 – 21000 range in the very short term.
Volatility too remains in a steady state maintaining between 10-12 for a quite a long period which indicates that calm slow and steady bull market.