NIFTY 50 EOD ANALYSIS -10-08-21
IN SUMMARY
Open / High / Low / Close
16274.8 / 16359.25 / 16202.25 / 16228.10
Trading Range Low to High: 141 points
Likely Max Realistic Opportunity @ 50%: 70.5 points
India VIX: 12.71 / +0.79%
FII DII activities: +511 Crores
CHART BASED CONCLUSIONS
Nifty made a higher and a higher low.
This higher high was in terms of the ATH level of Nifty which was hit before 1100h.
The not so encouraging European markets forced Nifty to end below 16300.
Once again, Nifty has closed just around the open price and has formed another Doji pattern.
TOP LOSERS CONTRIBUTING TO NIFTY FALL
5 scrips were responsible for dragging Nifty down by at least 105 points. These were:
JSW STEEL
SHREE CEMENT
ITC
BAJAJ FINSERV
TATA STEEL
TOP GAINERS CONTRIBUTING TO NIFTY BEING ABLE TO CLOSE IN GREEN
Together these 5 contributed a gain of 105 points:
HDFC
INFOSYS
RELIANCE
BHARTI AIRTEL
KOTAK BANK
This is a great coincidence! Both the sides contributed 105 points on either side and this explains the Doji!
POSITIVES
Nifty ended above the open price.
FII - DII net numbers are positive.
HDFC BANK closed above 1500 for the second day.
HDFC closed above the hard resistance of 2660.
BANK NIFTY closed yet again above 36000.
NEGATIVES
MARUTI and TATA MOTORS remained under pressure after the morning spike on the way up.
SBIN is still under pressure which is putting both the indices under pressure.
16300 appears to be a tough one even after HDFC twins have recovered from the slumber.
RELIANCE was unable to hold on to 2100+ levels.
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
When the price remains around the same number and the buyer's increases, it signals an upward move in the prices. This is what we have learned as one of the basic principles of demand and supply.
If we club the Net FII DII of yesterday and today, it is just +6 Crores and a slightly higher close. This is quite an interesting situation to have and I would seek input from the readers if they have encountered such situations in the past.
It appeared that in the closing minutes, Nifty moves were managed to close it near flat in line with the global cues.
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
16274.8 / 16359.25 / 16202.25 / 16228.10
Trading Range Low to High: 141 points
Likely Max Realistic Opportunity @ 50%: 70.5 points
India VIX: 12.71 / +0.79%
FII DII activities: +511 Crores
CHART BASED CONCLUSIONS
Nifty made a higher and a higher low.
This higher high was in terms of the ATH level of Nifty which was hit before 1100h.
The not so encouraging European markets forced Nifty to end below 16300.
Once again, Nifty has closed just around the open price and has formed another Doji pattern.
TOP LOSERS CONTRIBUTING TO NIFTY FALL
5 scrips were responsible for dragging Nifty down by at least 105 points. These were:
JSW STEEL
SHREE CEMENT
ITC
BAJAJ FINSERV
TATA STEEL
TOP GAINERS CONTRIBUTING TO NIFTY BEING ABLE TO CLOSE IN GREEN
Together these 5 contributed a gain of 105 points:
HDFC
INFOSYS
RELIANCE
BHARTI AIRTEL
KOTAK BANK
This is a great coincidence! Both the sides contributed 105 points on either side and this explains the Doji!
POSITIVES
Nifty ended above the open price.
FII - DII net numbers are positive.
HDFC BANK closed above 1500 for the second day.
HDFC closed above the hard resistance of 2660.
BANK NIFTY closed yet again above 36000.
NEGATIVES
MARUTI and TATA MOTORS remained under pressure after the morning spike on the way up.
SBIN is still under pressure which is putting both the indices under pressure.
16300 appears to be a tough one even after HDFC twins have recovered from the slumber.
RELIANCE was unable to hold on to 2100+ levels.
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
When the price remains around the same number and the buyer's increases, it signals an upward move in the prices. This is what we have learned as one of the basic principles of demand and supply.
If we club the Net FII DII of yesterday and today, it is just +6 Crores and a slightly higher close. This is quite an interesting situation to have and I would seek input from the readers if they have encountered such situations in the past.
It appeared that in the closing minutes, Nifty moves were managed to close it near flat in line with the global cues.
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.
