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ICICI Bank on Steroids, fires up Bank Nifty & rescues Nifty

NSE:ICICIBANK   ICICI BANK
NIFTY 50 EOD ANALYSIS 25-10-21

In this post, I talk about the analysis for the day and the trading range for tomorrow. The video discusses with the help of the charts how the indices as well as leading stocks performed during the day and their likely play tomorrow.

O 18229.50

H 18241. 40

L 17968.50

C 18125. 40

EOD - +10 points /-0.06%

India VIX = 17.61 / +0.28%

SGX Nifty 25-10-21 1840h = Flat

FII DII = Unavailable till 1840h but likely to be negative with some buying by DIIs.

CHART BASED CONCLUSIONS using 5 Minutes Chart



Nifty ended flat as if nothing has happened.

In Hindi, today’s day can be summed up as -- Khaya Piya Kuch Nahi, Gilas Toda Baraa Aanaa!

Nifty broke 18000 solid level as well but somehow managed to close flat.

Nifty has now severely underperformed to Bank Nifty . This si quite a concern as except for banks no one seems to be supporting Nifty .


NIFTY WEIGHT LIFTERS & DRAGGERS

Top 5 Lifters contributed = 41

Top 5 Draggers contributed = 24

Net = +17

POSITIVES
ICICI Bank roared with the thunder that the results deserve.

Kotak Bank has managed to close well above 2100.

Axis Bank has also run up ahead of its results.

SBIN continues to hold 500+ levels.


NEGATIVES

HDFC Bank was shivering as ICICI Bank was catching the limelight. Its inability to sustain higher levels is a cause of concern from a short-term perspective.

Reliance failed to hold on to higher levels post its results though it closed just on the line of 2600.

ITC has been beaten down and is the new punching bag of the Nifty pack.

TRADING RANGE FOR 26 October 2021

Nifty 17900 as the new support base and 18150-200 and every few points thereafter is a resistance.

Bank Nifty is a rocket and it would be very hard for me to gauge the speed or the lack of it of this new rocket and I will wait for the price action to play out for the next few days before venturing into the support/resistance placement.

INSIGHTS / OBSERVATIONS

As mentioned in yesterday’s video, ICICI Bank was in focus, and what a strong performance on the exchange by the leading bank. I like such actions that clearly define that the key fundamental change in the bank’s performance, the NPAs has been welcomed warmly by the market.

And as expected, Reliance did not make any wild downside moves as it had been priced from the highs around 2730 and it fell 5% already ahead of the event so we will have to see how it behaves tomorrow as it has been able to hold 2600 for the day.

I am wondering what would happen tomorrow if ICICI Bank remains flat? Who will be at Nifty’s rescue?
Bank Nifty has been doing a terrific comeback after long periods of underperformance. Had it not been for the index, Nifty would have been closer to 17600-650 already!

What do you feel about this?

Here is the video link --





Thank you, and Happy Money Making!

Umesh
25-10-21

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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