NIFTY 50 EOD ANALYSIS -09-08-21
IN SUMMARY
Open / High / Low / Close
16281.35 / 16320.75 / 16179.05 / 16258.25
Trading Range Low to High: 141 points
Likely Max Realistic Opportunity @ 50%: 70.5 points
India VIX: 12.61 / --0.00%
FII DII activities: -505 Crores
CHART BASED CONCLUSIONS
Nifty made a slightly lower high and broke 16200 to make a lower low.
It ended mildly positive which is comforting after it retested the opening low made on 4-8-21.
16300+ appears to be an issue for now as it could not clear the earlier high as well.
Even though Nifty bounced back from the lows smartly, it ended the day with a Doji candle signaling indecisiveness which is confirmed by the fact that HDFC BANK struggled to hold 1500 levels and RELIANCE is unable to decide which way to go.
Note: From today, I am switching over to an improved way of recording my analysis. As such instead of the Top 3 Gainers / Losers, I will state the top scrips that helped Nifty go up / down. Hope this helps.
TOP LOSERS CONTRIBUTING TO NIFTY FALL
5 scrips were responsible for dragging Nifty down by at least 45 points. These were:
RELIANCE
JSW STEEL
ADANI PORTS
BAJAJ FINANCE
LT
TOP GAINERS CONTRIBUTING TO NIFTY BEING ABLE TO CLOSE IN GREEN
Together these 5 contributed a gain of 77 points:
HDFC BANK
INFOSYS
BAJAJ FINSERV
ICICI BANK
AXIS BANK
So Nifty ended in +20 and this is how it was able to do so:
Top 5 Lifters 77
Top 5 Draggers 45
Net 32
POSITIVES
Nifty ended above 16250.
FIIs have turned Net buyers even though in small numbers.
HDFC BANK closed above 1500 for the first time after 16-7-21.
It was ably supported by ICICI BANK, INFOSYS & AXIS BANK.
BANK NIFTY closed above 36000.
NEGATIVES
RELIANCE made a quick dash to the 2065-70 area and is still below the crucial resistance line of 2080.
SBIN is still under pressure possibly on account of the Vodafone exposure issue.
16300 appears to be a tough one to crack without the support of HDFC and RELIANCE.
TRADING RANGE FOR W/B 10-8-21
Nifty broad range for the week 16000-16500. As of now, it has not made any significant movement from where one could derive the likely supports and resistances.
BANK NIFTY support base at 35200-600 and resistance at 36200-36500.
INSIGHT / OBSERVATIONS
While MARUTI and TATA MOTORS were under selling pressure after hitting higher levels in the AM session, M&M has managed to hold on to higher levels and is doing well. It is quite an unusual situation to experience.
What do you think could be the reason?
Thank you, and Happy Money Making!
Umesh
9-8-21
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
Open / High / Low / Close
16281.35 / 16320.75 / 16179.05 / 16258.25
Trading Range Low to High: 141 points
Likely Max Realistic Opportunity @ 50%: 70.5 points
India VIX: 12.61 / --0.00%
FII DII activities: -505 Crores
CHART BASED CONCLUSIONS
Nifty made a slightly lower high and broke 16200 to make a lower low.
It ended mildly positive which is comforting after it retested the opening low made on 4-8-21.
16300+ appears to be an issue for now as it could not clear the earlier high as well.
Even though Nifty bounced back from the lows smartly, it ended the day with a Doji candle signaling indecisiveness which is confirmed by the fact that HDFC BANK struggled to hold 1500 levels and RELIANCE is unable to decide which way to go.
Note: From today, I am switching over to an improved way of recording my analysis. As such instead of the Top 3 Gainers / Losers, I will state the top scrips that helped Nifty go up / down. Hope this helps.
TOP LOSERS CONTRIBUTING TO NIFTY FALL
5 scrips were responsible for dragging Nifty down by at least 45 points. These were:
RELIANCE
JSW STEEL
ADANI PORTS
BAJAJ FINANCE
LT
TOP GAINERS CONTRIBUTING TO NIFTY BEING ABLE TO CLOSE IN GREEN
Together these 5 contributed a gain of 77 points:
HDFC BANK
INFOSYS
BAJAJ FINSERV
ICICI BANK
AXIS BANK
So Nifty ended in +20 and this is how it was able to do so:
Top 5 Lifters 77
Top 5 Draggers 45
Net 32
POSITIVES
Nifty ended above 16250.
FIIs have turned Net buyers even though in small numbers.
HDFC BANK closed above 1500 for the first time after 16-7-21.
It was ably supported by ICICI BANK, INFOSYS & AXIS BANK.
BANK NIFTY closed above 36000.
NEGATIVES
RELIANCE made a quick dash to the 2065-70 area and is still below the crucial resistance line of 2080.
SBIN is still under pressure possibly on account of the Vodafone exposure issue.
16300 appears to be a tough one to crack without the support of HDFC and RELIANCE.
TRADING RANGE FOR W/B 10-8-21
Nifty broad range for the week 16000-16500. As of now, it has not made any significant movement from where one could derive the likely supports and resistances.
BANK NIFTY support base at 35200-600 and resistance at 36200-36500.
INSIGHT / OBSERVATIONS
While MARUTI and TATA MOTORS were under selling pressure after hitting higher levels in the AM session, M&M has managed to hold on to higher levels and is doing well. It is quite an unusual situation to experience.
What do you think could be the reason?
Thank you, and Happy Money Making!
Umesh
9-8-21
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.
