NIFTY 50 EOD ANALYSIS -26-08-21
IN SUMMARY
O / H / L / C
16627.95 / 16683.7 / 16603.7 / 16636.9
H-L = 80 points
VIX 13.54 / -0.3%
FII DII: -919 Crores
Likely open: Flat to positive with resistance at 16650-700.
CHART BASED CONCLUSIONS
On a closing basis, Nifty expired the series on a flat note.
Nifty made a lower high and a lower low.
The trading range for the day has been reducing over the last few sessions.
This may indicate either a breakout or a break-down.
Yet another indecisive Doji made by Nifty on the daily charts.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
RELIANCE 03
ICICI BANK 02
HDFC LIFE 02
BRITANNIA 01
HUL 01
TOTAL 09
The Draggers
BHARTI AIRTEL 01
JSW STEEL 01
INFOSYS 01
SBI 01
ITC 01
TOTAL 05
Lifter - Draggers = +05
The above clearly explains why Nifty ended almost flat. It seems all the scrips were too tired or too cautious to move either way.
POSITIVES
NIFTY ended the series on a very mild positive note.
RELIANCE and ICICI BANK helped Nifty stay grounded above 16600.
HDFC twins have also maintained sanity for the indices to close on a flat note.
DIIs have bought in excess of 1,000 Crores so overall the trend is likely to be up.
NEGATIVES
Nifty failed to go anywhere near 16700.
It made a lower low.
FIIs are still in Sell mode with 1900+ Crores in Sell value.
MARUTI has been in the negative mode for quite a few sessions. So either it may touch its FIB around 6400 or it may snap back up. Wait and watch for now.
TRADING RANGE FOR 27-8-21
The Nifty baseline moves up to 16500-550. The resistances are now from 16650 onwards.
BANK NIFTY support base also slides to 35000-35200 and resistance at 35800-36000-36200.
INSIGHT / OBSERVATIONS
RELIANCE and ICICI BANK both have moved up by 1%+ and yet their contribution is meager to Nifty. This is puzzling as usually, they make more contributions even with a similar % increase or decrease.
I do not know if Bulls managed to bring the Nifty above 16600 or if it was heavy put writing that prevented Nifty from falling further.
The close-in indices appear that this has been staged by the Pros.
In my view, the expiry was subdued only because of not-so-good global cues. Otherwise, Nifty may have ended above or closer to 16700.
What do you feel?
Thank you, and Happy Money Making!
Umesh
26-8-21
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
O / H / L / C
16627.95 / 16683.7 / 16603.7 / 16636.9
H-L = 80 points
VIX 13.54 / -0.3%
FII DII: -919 Crores
Likely open: Flat to positive with resistance at 16650-700.
CHART BASED CONCLUSIONS
On a closing basis, Nifty expired the series on a flat note.
Nifty made a lower high and a lower low.
The trading range for the day has been reducing over the last few sessions.
This may indicate either a breakout or a break-down.
Yet another indecisive Doji made by Nifty on the daily charts.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
RELIANCE 03
ICICI BANK 02
HDFC LIFE 02
BRITANNIA 01
HUL 01
TOTAL 09
The Draggers
BHARTI AIRTEL 01
JSW STEEL 01
INFOSYS 01
SBI 01
ITC 01
TOTAL 05
Lifter - Draggers = +05
The above clearly explains why Nifty ended almost flat. It seems all the scrips were too tired or too cautious to move either way.
POSITIVES
NIFTY ended the series on a very mild positive note.
RELIANCE and ICICI BANK helped Nifty stay grounded above 16600.
HDFC twins have also maintained sanity for the indices to close on a flat note.
DIIs have bought in excess of 1,000 Crores so overall the trend is likely to be up.
NEGATIVES
Nifty failed to go anywhere near 16700.
It made a lower low.
FIIs are still in Sell mode with 1900+ Crores in Sell value.
MARUTI has been in the negative mode for quite a few sessions. So either it may touch its FIB around 6400 or it may snap back up. Wait and watch for now.
TRADING RANGE FOR 27-8-21
The Nifty baseline moves up to 16500-550. The resistances are now from 16650 onwards.
BANK NIFTY support base also slides to 35000-35200 and resistance at 35800-36000-36200.
INSIGHT / OBSERVATIONS
RELIANCE and ICICI BANK both have moved up by 1%+ and yet their contribution is meager to Nifty. This is puzzling as usually, they make more contributions even with a similar % increase or decrease.
I do not know if Bulls managed to bring the Nifty above 16600 or if it was heavy put writing that prevented Nifty from falling further.
The close-in indices appear that this has been staged by the Pros.
In my view, the expiry was subdued only because of not-so-good global cues. Otherwise, Nifty may have ended above or closer to 16700.
What do you feel?
Thank you, and Happy Money Making!
Umesh
26-8-21
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.
