Nifty is Swinging in a highly volatile manner!
NIFTY 50 EOD ANALYSIS -10-08-21
IN SUMMARY
Open / High / Low / Close
16327.3 / 16338.75 / 16162.55 / 16282.25.10 [+2.15 /+0.01%]
Trading Range Low to High: 176 points
Likely Max Realistic Opportunity @ 50%: 88 points
India VIX: 12.71 / 0.0%
FII DII activities: +444 Crores
CHART BASED CONCLUSIONS
Nifty made a lower high and a lower low.
Nifty ended almost flat after all the drama that took place during the day.
Although the close is flat, the candle formed on the daily chart is a hammer pattern indicating a good bullish sentiment.
TOP LOSERS CONTRIBUTING TO NIFTY FALL
5 scrips were responsible for dragging Nifty down by at least 8 points. These were:
HDFC BANK
ICICI BANK
KOTAK BANK
HDFC
SHREE CEMENTS
TOP GAINERS CONTRIBUTING TO NIFTY BEING ABLE TO CLOSE IN GREEN
Together these 5 contributed a gain of 9 points:
RELIANCE
JSW STEEL
TATA STEEL
BAJAJ FINSERV
IOC
This clearly explains the reason why Nifty ended flat.
POSITIVES
Nifty ended above 16250.
FII - DII net numbers are positive and both are net buyers for a small amount despite sharp sell-off.
RELIANCE stood firm amidst extreme volatility and closed at 2117 after rising in the last half an hour or so.
TATA MOTORS made a splendid recovery from a low of 9 points which is almost 3% and that also helped change the sentiment in the auto sector.
SBIN ended in the green after the recent sell-off.
NEGATIVES
16300++ is a hard level to sustain and looks like RELIANCE also could not take Nifty near 16300 at the close.
BANK NIFTY closed below 36000.
Leading private banks ended in red and dragged the indices.
HDFC BANK closed below 1500.
TRADING RANGE FOR W/B 11-8-21
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
It was a very volatile day as Nifty fell 176 points from the high and then recovered 120 points making it a a journey of 354 points from the previous close to today;s close. And yet it ended flat.
Sector rotation may be ongoing as Nifty falls and the bounces back and charts do not indicate sector rotation unless the sectoral analysis is done as well.
Thank you, and Happy Money Making!
Umesh
10-8-21
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
16327.3 / 16338.75 / 16162.55 / 16282.25.10 [+2.15 /+0.01%]
Trading Range Low to High: 176 points
Likely Max Realistic Opportunity @ 50%: 88 points
India VIX: 12.71 / 0.0%
FII DII activities: +444 Crores
CHART BASED CONCLUSIONS
Nifty made a lower high and a lower low.
Nifty ended almost flat after all the drama that took place during the day.
Although the close is flat, the candle formed on the daily chart is a hammer pattern indicating a good bullish sentiment.
TOP LOSERS CONTRIBUTING TO NIFTY FALL
5 scrips were responsible for dragging Nifty down by at least 8 points. These were:
HDFC BANK
ICICI BANK
KOTAK BANK
HDFC
SHREE CEMENTS
TOP GAINERS CONTRIBUTING TO NIFTY BEING ABLE TO CLOSE IN GREEN
Together these 5 contributed a gain of 9 points:
RELIANCE
JSW STEEL
TATA STEEL
BAJAJ FINSERV
IOC
This clearly explains the reason why Nifty ended flat.
POSITIVES
Nifty ended above 16250.
FII - DII net numbers are positive and both are net buyers for a small amount despite sharp sell-off.
RELIANCE stood firm amidst extreme volatility and closed at 2117 after rising in the last half an hour or so.
TATA MOTORS made a splendid recovery from a low of 9 points which is almost 3% and that also helped change the sentiment in the auto sector.
SBIN ended in the green after the recent sell-off.
NEGATIVES
16300++ is a hard level to sustain and looks like RELIANCE also could not take Nifty near 16300 at the close.
BANK NIFTY closed below 36000.
Leading private banks ended in red and dragged the indices.
HDFC BANK closed below 1500.
TRADING RANGE FOR W/B 11-8-21
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
It was a very volatile day as Nifty fell 176 points from the high and then recovered 120 points making it a a journey of 354 points from the previous close to today;s close. And yet it ended flat.
Sector rotation may be ongoing as Nifty falls and the bounces back and charts do not indicate sector rotation unless the sectoral analysis is done as well.
Thank you, and Happy Money Making!
Umesh
10-8-21
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.
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