What a strong comeback by the INDICES! NIFTY batting 17822!
NIFTY 50 EOD ANALYSIS -23-09-21
IN SUMMARY
O / H / L / C
17670.85 / 17843.90 / 17646.55 / 17822.95
H-L = 86 points
VIX 16.6 / +0.67%
FII DII: +1530 Crores
SGX NIFTY at 1930h - 17853 +22 points
Likely open: Flat to mild positive. Profit booking may kick-in in the PM session.
CHART BASED CONCLUSIONS - 15 M Chart
A strong gap-up open and a sustained rally that ended the day a few points above the new ATH of 17843.9.
It was after a long time that NIFTY was supported well by BANK NIFTY and other sectors as well.
NIFTY yet again ends in the proverbial uncharted territory.
The daily chart shows that today’s candle is up in the air like a rocket fired by someone.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
RELIANCE 42
HDFC BANK 32
HDFC 30
BAJAJ FINSERV 28
ICICI BANK 19
TOTAL 151
The Draggers
HDFC LIFE 02
ITC 02
NESTLE 02
DR REDDY’S 01
BRITANNIA 01
TOTAL 08
Lifter - Draggers = +143
POSITIVES
RELIANCE chose to join hands with the HDFC twins and then what comes out was a blockbuster.
BANK NIFTY also joined the party and has gained the lost ground in a matter of just one session.
There are plenty of positives and the list would be long so I am not writing it here.
NIFTY ends on yet another ATH and for the first time close above 17800.
NEGATIVES
As a mark of respect to the bullishness and positivity shown by the markets, let me not even think of any negativity at least for today’s analysis.
TRADING RANGE FOR 24-09-21
I am not sure what to state about NIFTY levels. So I will let it settle down in the new terrain and will see where it ends the week before stating any levels.
The spike in BANK NIFTY has torn apart all the levels on the downside so will wait for the index to end the week before stating them. The resistances are obviously at 38000 and then around the ATH of 38100+.
INSIGHTS / OBSERVATIONS
All constituents of BANK NIFTY ended in the green.
FMCGs are known as the defensives and today when the Indices were on a roll, there was mild profit booking in the sector as HUL, ITC and BRITANNIA ended in mild red.
TATA MOTORS at one stage was up 4% and as against that MARUTI could barely move in to the 1st gear and struggled throughout the day drifting towards the P Close several times.
For the last 2 days, similar price action had happened in the HDFC twins and today we know what happened! Will MARUTI follow their example tomorrow?
RELIANCE may take its time to reach 2500 as it made an ATH of 2497 just around one of the FIB extensions.
Peak margin rules would get invoked from tomorrow morning. So for retail traders like me, as regards Stock Options are concerned, the month would be expiring tomorrow around lunch as thereafter, many retailers like me, would start exiting thereby put pressure on the downside as regards Option premia are concerned.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
23-09-21
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
17670.85 / 17843.90 / 17646.55 / 17822.95
H-L = 86 points
VIX 16.6 / +0.67%
FII DII: +1530 Crores
SGX NIFTY at 1930h - 17853 +22 points
Likely open: Flat to mild positive. Profit booking may kick-in in the PM session.
CHART BASED CONCLUSIONS - 15 M Chart
A strong gap-up open and a sustained rally that ended the day a few points above the new ATH of 17843.9.
It was after a long time that NIFTY was supported well by BANK NIFTY and other sectors as well.
NIFTY yet again ends in the proverbial uncharted territory.
The daily chart shows that today’s candle is up in the air like a rocket fired by someone.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
RELIANCE 42
HDFC BANK 32
HDFC 30
BAJAJ FINSERV 28
ICICI BANK 19
TOTAL 151
The Draggers
HDFC LIFE 02
ITC 02
NESTLE 02
DR REDDY’S 01
BRITANNIA 01
TOTAL 08
Lifter - Draggers = +143
POSITIVES
RELIANCE chose to join hands with the HDFC twins and then what comes out was a blockbuster.
BANK NIFTY also joined the party and has gained the lost ground in a matter of just one session.
There are plenty of positives and the list would be long so I am not writing it here.
NIFTY ends on yet another ATH and for the first time close above 17800.
NEGATIVES
As a mark of respect to the bullishness and positivity shown by the markets, let me not even think of any negativity at least for today’s analysis.
TRADING RANGE FOR 24-09-21
I am not sure what to state about NIFTY levels. So I will let it settle down in the new terrain and will see where it ends the week before stating any levels.
The spike in BANK NIFTY has torn apart all the levels on the downside so will wait for the index to end the week before stating them. The resistances are obviously at 38000 and then around the ATH of 38100+.
INSIGHTS / OBSERVATIONS
All constituents of BANK NIFTY ended in the green.
FMCGs are known as the defensives and today when the Indices were on a roll, there was mild profit booking in the sector as HUL, ITC and BRITANNIA ended in mild red.
TATA MOTORS at one stage was up 4% and as against that MARUTI could barely move in to the 1st gear and struggled throughout the day drifting towards the P Close several times.
For the last 2 days, similar price action had happened in the HDFC twins and today we know what happened! Will MARUTI follow their example tomorrow?
RELIANCE may take its time to reach 2500 as it made an ATH of 2497 just around one of the FIB extensions.
Peak margin rules would get invoked from tomorrow morning. So for retail traders like me, as regards Stock Options are concerned, the month would be expiring tomorrow around lunch as thereafter, many retailers like me, would start exiting thereby put pressure on the downside as regards Option premia are concerned.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
23-09-21
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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