Weekly Bank Nifty expiry steers Nifty away from days low

Thursday, an extremely volatile day on account of bank nifty weekly expiry today helped the index to close above its day low.
Nifty saw a massive selling pressure starting from the day’s gap up open till the last 30 minutes before the close on account of demonetization. The gap-up open was sold into within minutes and selling continued whenever there was a small rally on the upside, bulls tried hard to protect the 200 DMA at 8130 but sentiments both domestic and global were not kind enough thus failed decisively in the last hr of trading where the nifty touched intraday lows of 8060 before bouncing back to close at 8079. Sectors hit were consumer goods, pharma, realty, auto and IT. Banks traded mixed due to the weekly expiry which elevated nifty from its lows during close. Metals surprisingly outperformed even in such a down day after a steep correction earlier this week.

The trading showed buying interest at lower levels with index unable to break the 8000 mark. It can be perceived that index shows bottoming out at 8000 levels and probably a reversal can be on the cards which might take the index to 8200-8250 levels.
Sectors to watch – Banks and Metals
Stock in focus today was Hind Zinc up over 5% garnering a buying interest with technically closing above the resistance of 248.

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