Nifty under severe pressure at ATH - Caution Ahead!
NIFTY 50 EOD ANALYSIS -18-08-21
IN SUMMARY
O / H / L / C
16691.95 / 16701.85 / 16535.85 / 16568.85 [-46 / -0.28%]
H-L = 166
VIX 12.91 / -3.72%
FII DII: -1325 Crores
Likely open: Negative to flat
CHART BASED CONCLUSIONS
Nifty touched 15701 for the first time and made yet another high.
Nifty made a higher high and a higher low.
The Nifty failed to hold on to the higher levels and was sold off after an hour from the morning and kept falling till the last one hour when there was a mild recovery.
The fall was consistent indicating selling pressure around 16700.
On daily charts, the candle looks bearish but with low volumes.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
BAJAJ FINANCE 55
BAJAJ FINSERV 29
RELIANCE 20
ADANI PORTS 17
ULTRATECH 15
TOTAL 136
The Draggers
ICICI BANK 61
HDFC 34
KOTAK BANK 24
INFOSYS 20
SBI LIFE 15
TOTAL 154
Lifter - Draggers = -18
The selling appears to be quite intense and the heavyweights from key sectors have joined in to drag the indices down.
POSITIVES
Nifty made yet another ATH.
HDFC BANK held on to 1500+ levels despite BANK NIFTY being under severe pressure.
RELIANCE ended in the green even though it was modest. The fact that it did not join the sell-off is a big positive.
NEGATIVES
Key constituents of Nifty contributed significantly on the downside than what they have in the recent past on the up side.
FIIs and DIIs have both turned net sellers.
BANK NIFTY broke 35600 level and was down 800 points intraday.
TRADING RANGE FOR 20-8-21
Nifty baseline moves down to 16450-500.
BANK NIFTY support base also slides to 35000-400 and resistance at 36200-36500.
INSIGHT / OBSERVATIONS
There was clearly something that was not visible to the naked eyes that is known to the FIIs-DIIs as the selling was consistent in Nifty and BANK NIFTY was even worse.
As of 1255h on 19-8-21, SGX Nifty is down 290 points!
There is something that has happened globally as well - if the US also trades in the negative, we may see a bloodbath tomorrow and the trend for the short term may change.
What do you feel?
Thank you, and Happy Money Making!
Umesh
18-8-21
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
16691.95 / 16701.85 / 16535.85 / 16568.85 [-46 / -0.28%]
H-L = 166
VIX 12.91 / -3.72%
FII DII: -1325 Crores
Likely open: Negative to flat
CHART BASED CONCLUSIONS
Nifty touched 15701 for the first time and made yet another high.
Nifty made a higher high and a higher low.
The Nifty failed to hold on to the higher levels and was sold off after an hour from the morning and kept falling till the last one hour when there was a mild recovery.
The fall was consistent indicating selling pressure around 16700.
On daily charts, the candle looks bearish but with low volumes.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
BAJAJ FINANCE 55
BAJAJ FINSERV 29
RELIANCE 20
ADANI PORTS 17
ULTRATECH 15
TOTAL 136
The Draggers
ICICI BANK 61
HDFC 34
KOTAK BANK 24
INFOSYS 20
SBI LIFE 15
TOTAL 154
Lifter - Draggers = -18
The selling appears to be quite intense and the heavyweights from key sectors have joined in to drag the indices down.
POSITIVES
Nifty made yet another ATH.
HDFC BANK held on to 1500+ levels despite BANK NIFTY being under severe pressure.
RELIANCE ended in the green even though it was modest. The fact that it did not join the sell-off is a big positive.
NEGATIVES
Key constituents of Nifty contributed significantly on the downside than what they have in the recent past on the up side.
FIIs and DIIs have both turned net sellers.
BANK NIFTY broke 35600 level and was down 800 points intraday.
TRADING RANGE FOR 20-8-21
Nifty baseline moves down to 16450-500.
BANK NIFTY support base also slides to 35000-400 and resistance at 36200-36500.
INSIGHT / OBSERVATIONS
There was clearly something that was not visible to the naked eyes that is known to the FIIs-DIIs as the selling was consistent in Nifty and BANK NIFTY was even worse.
As of 1255h on 19-8-21, SGX Nifty is down 290 points!
There is something that has happened globally as well - if the US also trades in the negative, we may see a bloodbath tomorrow and the trend for the short term may change.
What do you feel?
Thank you, and Happy Money Making!
Umesh
18-8-21
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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