Back to the old tussle - FIIs Vs DIIs and Nifty slips
NIFTY 50 EOD ANALYSIS -01-09-21
IN SUMMARY
O / H / L / C
17185.6 / 17225.75 / 17055.05 / 17076.25 [-55.95 /-0.33%]
H-L = 170 points
VIX 14.19 / -2.27%
FII DII: +621 Crores
Likely open: Positive and interesting to see how Nifty reacts as this would be the first expiry in the 17000 zones. The big Q is will it hold the key level?
CHART BASED CONCLUSIONS
NIFTY made yet another high and a higher low as well.
The higher high could not be sustained due to intense selling pressure from some of the heavyweights which dragged the index below 17100.
The daily charts indicate that there was selling pressure but the volume is not higher than yesterday’s session. This is more of a profit booking drive that has been undertaken by the FIIs who have been consistently buying in the cash market for the last several sessions.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
ASIAN PAINTS 11
NESTLE 09
RELIANCE 07
SBI LIFE 07
AXIS BANK 06
TOTAL 40
The Draggers
INFOSYS 25
HDFC 22
TCS 19
BAJAJ FINSERV 14
TATA STEEL 07
TOTAL 87
Lifter - Draggers = -47
Of the 55 negative points, 47 have come per above. This is the might of these scrips.
POSITIVES
NIFTY hit another ATH above 17200.
BANK NIFTY ended above 36500 and ended in the good green despite heavy selling in NIFTY.
RELIANCE did not end in red.
HDFC BANK more or less held its ground.
NEGATIVES
IT heavyweights have been witnessing selling pressure for the last few sessions.
NIFTY failed to close above the P Close.
NIFTY fell close to 17050 and tomorrow is expiry so volatility may be high.
DIIs have begun banking gains which led to selling pressure.
TRADING RANGE FOR 02-09-21
16950-17250 is the range that I can think of for the week.
NIFTY may consolidate between these levels until either is broken on a closing basis.
BANK NIFTY support base moves up to 36200-400 and resistance at 36800-37000-37200.
INSIGHT / OBSERVATIONS
With the change in the lot size of NIFTY from Aug 2021, NIFTY has become more volatile and now with it being above 17000, a 150 point move on either side is also less than 1% move which is what needs to be digested by the traders. It has now started giving the kind of moves that BANK NIFTY used to give.
Around March 2020, BANK NIFTY had reached levels around 16500-17000. Today, NIFTY is at 17000+ and we are around 17 months away from those days. This is the power of the stock market.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
01-09-21
P.S. If you choose to comment on the above, please do so with your analytical view rather than merely passing a comment. Your presentation of the view held by you would help other readers as well.
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
17185.6 / 17225.75 / 17055.05 / 17076.25 [-55.95 /-0.33%]
H-L = 170 points
VIX 14.19 / -2.27%
FII DII: +621 Crores
Likely open: Positive and interesting to see how Nifty reacts as this would be the first expiry in the 17000 zones. The big Q is will it hold the key level?
CHART BASED CONCLUSIONS
NIFTY made yet another high and a higher low as well.
The higher high could not be sustained due to intense selling pressure from some of the heavyweights which dragged the index below 17100.
The daily charts indicate that there was selling pressure but the volume is not higher than yesterday’s session. This is more of a profit booking drive that has been undertaken by the FIIs who have been consistently buying in the cash market for the last several sessions.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
ASIAN PAINTS 11
NESTLE 09
RELIANCE 07
SBI LIFE 07
AXIS BANK 06
TOTAL 40
The Draggers
INFOSYS 25
HDFC 22
TCS 19
BAJAJ FINSERV 14
TATA STEEL 07
TOTAL 87
Lifter - Draggers = -47
Of the 55 negative points, 47 have come per above. This is the might of these scrips.
POSITIVES
NIFTY hit another ATH above 17200.
BANK NIFTY ended above 36500 and ended in the good green despite heavy selling in NIFTY.
RELIANCE did not end in red.
HDFC BANK more or less held its ground.
NEGATIVES
IT heavyweights have been witnessing selling pressure for the last few sessions.
NIFTY failed to close above the P Close.
NIFTY fell close to 17050 and tomorrow is expiry so volatility may be high.
DIIs have begun banking gains which led to selling pressure.
TRADING RANGE FOR 02-09-21
16950-17250 is the range that I can think of for the week.
NIFTY may consolidate between these levels until either is broken on a closing basis.
BANK NIFTY support base moves up to 36200-400 and resistance at 36800-37000-37200.
INSIGHT / OBSERVATIONS
With the change in the lot size of NIFTY from Aug 2021, NIFTY has become more volatile and now with it being above 17000, a 150 point move on either side is also less than 1% move which is what needs to be digested by the traders. It has now started giving the kind of moves that BANK NIFTY used to give.
Around March 2020, BANK NIFTY had reached levels around 16500-17000. Today, NIFTY is at 17000+ and we are around 17 months away from those days. This is the power of the stock market.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
01-09-21
P.S. If you choose to comment on the above, please do so with your analytical view rather than merely passing a comment. Your presentation of the view held by you would help other readers as well.
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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