BANK NIFTY tears apart 37K, Lifts NIFTY past 17600
NIFTY 50 EOD ANALYSIS -16-09-21
IN SUMMARY
O / H / L / C
17539.2 / 17644.6 / 17510.45 / 17629.5 [+110.05 /+0.63%]
H-L = 134 points
VIX 14.41 / +4.95%
FII DII: +826 Crores
Likely open: Flat to mild positive. All eyes would be on BANK NIFTY - whether it can hold higher levels and attain ATH as the week draws to a close.
CHART BASED CONCLUSIONS - 15 Minutes Chart
A mild gap-up open was immediately sold in to and the P Close was retested but then, NIFTY never looked back though the upside move was quite choppy when compared to BANK NIFTY.
The daily chart indicates that there was a strong buying that led the rise to the levels above 17600 even though the range was somewhat less when compared to BANK NIFTY.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
RELIANCE 47
ITC 34
ICICI BANK 24
SBI 23
HDFC BANK 15
TOTAL 143
The Draggers
TCS 15
BPCL 12
INFOSYS 09
GRASIM 05
JSW STEEL 05
TOTAL 46
Lifter - Draggers = +97
BPCL turned ex-dividend so the fall. It is best to ignore the same. Once we do that, the strong upmove is explained easily.
POSITIVES
NIFTY closed at a new ATH and also hit a new ATH.
And both are above 17600.
BANK NIFTY tore apart 37000-37200 resistance with fury and was responsible for lifting NIFTY along with RELIANCE.
BANK NIFTY ended on a new ATH and so did SBIN.
FIIs have bought in good numbers so the momentum is likely to continue in the short term.
NEGATIVES
INFOSYS keeps coming down.
HDFC made a lower close than yesterday.
VIX has gone up by almost 5%.
TRADING RANGE FOR 17-09-21
17300-17350 is the new support base. For the resistances, we will have to let a few days go by to see how and where it gets formed.
BANK NIFTY tore apart the barriers in typical style and is now facing resistance at 37800-38000-38200.
INSIGHTS / OBSERVATIONS
And as mentioned yesterday, the Banking giants roared and in style today to tear apart the resistance of 37000-37200 and the short covering may have fueled further upside in the index.
The fury was evident as in the AM session, even when HDFC BANK was in the red, BANK NIFTY kept rising gradually and held on to the opening low.
For the last 2-3 days I have been observing that HDFC BANK is unable to make a significant impact on the indices. I am not sure if the weight has changed or the other members of the indices group have gathered all-around support. This is a good sign as any dependency on one or two scrips is not a good sign from index strength POV.
A few days ago, I made an entry into IDEA at 7.3 and then gradually added few shares with every rise. Today cumulative ROI was seen at 43%! On a scrip that had trouble all over at that time, but my decision was very simple - MA-based.
So the next time when your process tells you to go long/short, just go ahead. Eventually, following the right process will lead you to the right outcome.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
16-09-21
NOTE --
This write-up is not a prediction mechanism for the movement of Indices in the Indian markets as the markets are unpredictable in nature. I may refer to many data points in the article but I do not base my view on any of these standalone. In fact, I prefer to react to the price moves than predict the price moves. I also do not review Open Interest. Whatever data points I am using, are all stated in the article. The article title, as well as its contents, can at best be stated as --- This Is How I Read Nifty. I hope I have been able to set the expectations right.
IN SUMMARY
O / H / L / C
17539.2 / 17644.6 / 17510.45 / 17629.5 [+110.05 /+0.63%]
H-L = 134 points
VIX 14.41 / +4.95%
FII DII: +826 Crores
Likely open: Flat to mild positive. All eyes would be on BANK NIFTY - whether it can hold higher levels and attain ATH as the week draws to a close.
CHART BASED CONCLUSIONS - 15 Minutes Chart
A mild gap-up open was immediately sold in to and the P Close was retested but then, NIFTY never looked back though the upside move was quite choppy when compared to BANK NIFTY.
The daily chart indicates that there was a strong buying that led the rise to the levels above 17600 even though the range was somewhat less when compared to BANK NIFTY.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
RELIANCE 47
ITC 34
ICICI BANK 24
SBI 23
HDFC BANK 15
TOTAL 143
The Draggers
TCS 15
BPCL 12
INFOSYS 09
GRASIM 05
JSW STEEL 05
TOTAL 46
Lifter - Draggers = +97
BPCL turned ex-dividend so the fall. It is best to ignore the same. Once we do that, the strong upmove is explained easily.
POSITIVES
NIFTY closed at a new ATH and also hit a new ATH.
And both are above 17600.
BANK NIFTY tore apart 37000-37200 resistance with fury and was responsible for lifting NIFTY along with RELIANCE.
BANK NIFTY ended on a new ATH and so did SBIN.
FIIs have bought in good numbers so the momentum is likely to continue in the short term.
NEGATIVES
INFOSYS keeps coming down.
HDFC made a lower close than yesterday.
VIX has gone up by almost 5%.
TRADING RANGE FOR 17-09-21
17300-17350 is the new support base. For the resistances, we will have to let a few days go by to see how and where it gets formed.
BANK NIFTY tore apart the barriers in typical style and is now facing resistance at 37800-38000-38200.
INSIGHTS / OBSERVATIONS
And as mentioned yesterday, the Banking giants roared and in style today to tear apart the resistance of 37000-37200 and the short covering may have fueled further upside in the index.
The fury was evident as in the AM session, even when HDFC BANK was in the red, BANK NIFTY kept rising gradually and held on to the opening low.
For the last 2-3 days I have been observing that HDFC BANK is unable to make a significant impact on the indices. I am not sure if the weight has changed or the other members of the indices group have gathered all-around support. This is a good sign as any dependency on one or two scrips is not a good sign from index strength POV.
A few days ago, I made an entry into IDEA at 7.3 and then gradually added few shares with every rise. Today cumulative ROI was seen at 43%! On a scrip that had trouble all over at that time, but my decision was very simple - MA-based.
So the next time when your process tells you to go long/short, just go ahead. Eventually, following the right process will lead you to the right outcome.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
16-09-21
NOTE --
This write-up is not a prediction mechanism for the movement of Indices in the Indian markets as the markets are unpredictable in nature. I may refer to many data points in the article but I do not base my view on any of these standalone. In fact, I prefer to react to the price moves than predict the price moves. I also do not review Open Interest. Whatever data points I am using, are all stated in the article. The article title, as well as its contents, can at best be stated as --- This Is How I Read Nifty. I hope I have been able to set the expectations right.
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