NIFTY scales new peak and closes as well around the peak
NIFTY 50 EOD ANALYSIS -02-09-21
IN SUMMARY
O / H / L / C
17095.4 / 17245.5 / 17059.7 / 17234.15
H-L = +186 points
VIX 14.24 / +0.357%
FII DII: +729 Crores
Likely open: Positive but there may be consolidation taking place as the Net Volume of FIIs DIIs is not significant. And all eyes on where the week closes - above 17200?
CHART BASED CONCLUSIONS
NIFTY made a new ATH and closed also at a new ATH which is closer to the ATH level indicating a strong close.
However, NIFTY had almost retested the lows of yesterday in the opening candle itself but they smartly recovered within the first 5 minutes and then never looked back.
The ride to the top was somewhat choppy and not smooth and the biggest move of the day happened in the first 5-minute candle itself. The rest were climbing the proverbial Wall of Worry.
That also justifies the slight jump in the VIX.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
TCS 25
RELIANCE 18
HDFC LIFE 15
SHREE CEMENTS 13
HUL 10
TOTAL 81
The Draggers
M&M 04
BAJAJ FINSERV 03
BAJAJ FINANCE 02
DIVIS LABS 02
TATA MOTORS 01
TOTAL 12
Lifter - Draggers = +69
There was not much negativity and that is what has propelled NIFTY to scale a new peak.
POSITIVES
Despite INFOSYS not being able to contribute, TCS led from the front and put up a great show of strength. Clearly, it has come a long way.
The FMCG giant HUL too has been keeping pace which is a good sign.
HDFC twins and RELIANCE also ended in the green. RELIANCE crossed 2300 but ended the day just below the line.
FIIs DIIs are both Net Buyers.
NEGATIVES
BANK NIFTY is finding it hard to cross the 37000 lines.
MARUTI as well as TATA MOTORS are under some sort of pressure on account of the semiconductor news. These two need to move up firmly as they have been trading within a range for a while now.
INFOSYS made a deep dive to 1663 and recovered in the late trade but closed a few points below its 20 DMA. On account of its weightage, it is important that it restores 1700+ levels for NIFTY to remain above 17200.
TRADING RANGE FOR 03-09-21
17000-17300 is the range that I can think of for the final day of the week.
BANK NIFTY support stays at 36200-400 and resistance at 37000-37200.
INSIGHT / OBSERVATIONS
The tendency of a scrip to go below its key moving averages and then make an attempt to come back up is a good sign indicating that the selling pressure has been exhausted for now and renewed buying interest has taken place.
This is what seems to be happening in INFOSYS. Tomorrow’s session will decide on whether it reclaims 1700 level or faces some hurdle around the 20 DMA resting at 1690.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
02-09-21
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
17095.4 / 17245.5 / 17059.7 / 17234.15
H-L = +186 points
VIX 14.24 / +0.357%
FII DII: +729 Crores
Likely open: Positive but there may be consolidation taking place as the Net Volume of FIIs DIIs is not significant. And all eyes on where the week closes - above 17200?
CHART BASED CONCLUSIONS
NIFTY made a new ATH and closed also at a new ATH which is closer to the ATH level indicating a strong close.
However, NIFTY had almost retested the lows of yesterday in the opening candle itself but they smartly recovered within the first 5 minutes and then never looked back.
The ride to the top was somewhat choppy and not smooth and the biggest move of the day happened in the first 5-minute candle itself. The rest were climbing the proverbial Wall of Worry.
That also justifies the slight jump in the VIX.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
TCS 25
RELIANCE 18
HDFC LIFE 15
SHREE CEMENTS 13
HUL 10
TOTAL 81
The Draggers
M&M 04
BAJAJ FINSERV 03
BAJAJ FINANCE 02
DIVIS LABS 02
TATA MOTORS 01
TOTAL 12
Lifter - Draggers = +69
There was not much negativity and that is what has propelled NIFTY to scale a new peak.
POSITIVES
Despite INFOSYS not being able to contribute, TCS led from the front and put up a great show of strength. Clearly, it has come a long way.
The FMCG giant HUL too has been keeping pace which is a good sign.
HDFC twins and RELIANCE also ended in the green. RELIANCE crossed 2300 but ended the day just below the line.
FIIs DIIs are both Net Buyers.
NEGATIVES
BANK NIFTY is finding it hard to cross the 37000 lines.
MARUTI as well as TATA MOTORS are under some sort of pressure on account of the semiconductor news. These two need to move up firmly as they have been trading within a range for a while now.
INFOSYS made a deep dive to 1663 and recovered in the late trade but closed a few points below its 20 DMA. On account of its weightage, it is important that it restores 1700+ levels for NIFTY to remain above 17200.
TRADING RANGE FOR 03-09-21
17000-17300 is the range that I can think of for the final day of the week.
BANK NIFTY support stays at 36200-400 and resistance at 37000-37200.
INSIGHT / OBSERVATIONS
The tendency of a scrip to go below its key moving averages and then make an attempt to come back up is a good sign indicating that the selling pressure has been exhausted for now and renewed buying interest has taken place.
This is what seems to be happening in INFOSYS. Tomorrow’s session will decide on whether it reclaims 1700 level or faces some hurdle around the 20 DMA resting at 1690.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
02-09-21
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.
