NIFTY 50 EOD ANALYSIS -07-10-21
In this post, I talk about the analysis for the day and the trading range for tomorrow. The video discusses with the help of the charts how the indices as well as leading stocks performed during the day and their likely play tomorrow.
O 17810.55
H 17857.55
L 17763.80
C 17790.35
EOD +144.35 points /+-0.82%
SGX Nifty @ 1735h 17847 / +25 points
FII DII = It is a bit early for the data to be released. DIIs may have sold.
CHART BASED CONCLUSIONS using 5 Minutes Chart
A strong 150 point gap up opening and then it moved in a sideways range and as FTSE open neared, it headed higher but could not decisively cross 17850 even on a 5-minute chart for more than one candle.
The expiry blues entered in the last hour and Nifty drifted towards 17800 and then broke the level as 17800 CE would have been written aggressively.
It gave up most of the gains made during the day and closed below 17800.
The daily chart indicates a Doji as the Open and Close prices were quite close.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 98
Top 5 Draggers contributed = 20
Net = +78
POSITIVES
Auto and IT leaders took the lead and held Nifty higher. The supremacy was evident as even the HDFC twins could not drag Nifty as they may have liked to do.
ICICI Bank closed above 700.
Reliance held on to the greener zone.
HDFC Bank held on to 1600 plus levels.
NEGATIVES
HDFC ended in red and is finding it hard to sustain closings above 2750.
Except for ICICI Bank, all leading banks ended in the red and that is what prevented Bank Nifty from attempting a hit to 38000.
TRADING RANGE FOR 8-10-21
Nifty 17600-650-700 is the support base. Resistance regrettably is at every nook and corner of the charts starting from 17800-820-850-900.
Bank Nifty Support = 37200-400 appears to be a good support area. Resistance 37800-38000-38200.
INSIGHTS / OBSERVATIONS
If you closely look at the OHLC numbers and intraday charts of the indices, you would realize that the moves for the day were such that they negated what happened yesterday.
The indices are just around the levels where they were on EOD 5-10-21. This means that we are still not out of the woods.
Tomorrow is the RBI policy so there may be some jerks experienced, however, in he recent times, the announcements have become a non-event.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
7-10-21
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 this post, I talk about the analysis for the day and the trading range for tomorrow. The video discusses with the help of the charts how the indices as well as leading stocks performed during the day and their likely play tomorrow.
O 17810.55
H 17857.55
L 17763.80
C 17790.35
EOD +144.35 points /+-0.82%
SGX Nifty @ 1735h 17847 / +25 points
FII DII = It is a bit early for the data to be released. DIIs may have sold.
CHART BASED CONCLUSIONS using 5 Minutes Chart
A strong 150 point gap up opening and then it moved in a sideways range and as FTSE open neared, it headed higher but could not decisively cross 17850 even on a 5-minute chart for more than one candle.
The expiry blues entered in the last hour and Nifty drifted towards 17800 and then broke the level as 17800 CE would have been written aggressively.
It gave up most of the gains made during the day and closed below 17800.
The daily chart indicates a Doji as the Open and Close prices were quite close.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 98
Top 5 Draggers contributed = 20
Net = +78
POSITIVES
Auto and IT leaders took the lead and held Nifty higher. The supremacy was evident as even the HDFC twins could not drag Nifty as they may have liked to do.
ICICI Bank closed above 700.
Reliance held on to the greener zone.
HDFC Bank held on to 1600 plus levels.
NEGATIVES
HDFC ended in red and is finding it hard to sustain closings above 2750.
Except for ICICI Bank, all leading banks ended in the red and that is what prevented Bank Nifty from attempting a hit to 38000.
TRADING RANGE FOR 8-10-21
Nifty 17600-650-700 is the support base. Resistance regrettably is at every nook and corner of the charts starting from 17800-820-850-900.
Bank Nifty Support = 37200-400 appears to be a good support area. Resistance 37800-38000-38200.
INSIGHTS / OBSERVATIONS
If you closely look at the OHLC numbers and intraday charts of the indices, you would realize that the moves for the day were such that they negated what happened yesterday.
The indices are just around the levels where they were on EOD 5-10-21. This means that we are still not out of the woods.
Tomorrow is the RBI policy so there may be some jerks experienced, however, in he recent times, the announcements have become a non-event.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
7-10-21
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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