NIFTY 50 EOD ANALYSIS -03-09-21
IN SUMMARY
O / H / L / C
17262.45 / 17340.1 / 17212.2 / 17323.6
H-L = +186 points
VIX 14.54 / +2.11%
FII DII: +1436 Crores
Likely open: Positive but there may be selling pressure if BANK NIFTY does not support it.
CHART BASED CONCLUSIONS
A good gap-up opening and then the typical retest of P Close. This is how NIFTY moved in the AM session.
Then, NIFTY retested and crossed the opening high and fell again to retest the P Close and recovered smartly to end the day closer to the ATH.
On a 5 minute chart, NIFTY looks highly volatile as if we are seeing a BANK NIFTY chart.
On the weekly chart, NIFTY shows a strong bullish candle that has not been seen for the last several weeks.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
RELIANCE 63
TITAN 09
INFOSYS 07
IOC 05
EICHER MOTORS 03
TOTAL 87
The Draggers
HDFC BANK 10
HDFC 09
HDFC LIFE 06
HUL 05
BHARTI AIRTEL 02
TOTAL 32
Lifter - Draggers = +55
The towering presence of RELIANCE is what changed the fortunes of NIFTY.
POSITIVES
RELIANCE soared and closed the week in style at a new ATH.
INFOSYS restored the 1700 level and is now above its 200 DMA.
Despite the negative news, MARUTI closed higher and at one stage looked set to retest 7000.
FIIs DIIs are both Net Buyers.
NEGATIVES
BANK NIFTY continues to underperform.
HDFC triplets were on the other side of RELIANCE. They perhaps tried to justify their might.
TRADING RANGE FOR WB 06-09-21
17000-17200 is the support base. I do not know what the upper levels may be.
BANK NIFTY support stays at 36200-400 and resistance at 37000-37200.
INSIGHT / OBSERVATIONS
The NIFTY rally is now becoming a stock driven rally possibly indicating exhaustion at higher levels and the coming week may see some profit booking.
Today it was RELIANCE and next week it could be INFOSYS and HDFC family.
It is time to turn cautious until BANK NIFTY closes well above 37200 as the index has the potential to drag NIFTY and upset the party.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
03-09-21
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
17262.45 / 17340.1 / 17212.2 / 17323.6
H-L = +186 points
VIX 14.54 / +2.11%
FII DII: +1436 Crores
Likely open: Positive but there may be selling pressure if BANK NIFTY does not support it.
CHART BASED CONCLUSIONS
A good gap-up opening and then the typical retest of P Close. This is how NIFTY moved in the AM session.
Then, NIFTY retested and crossed the opening high and fell again to retest the P Close and recovered smartly to end the day closer to the ATH.
On a 5 minute chart, NIFTY looks highly volatile as if we are seeing a BANK NIFTY chart.
On the weekly chart, NIFTY shows a strong bullish candle that has not been seen for the last several weeks.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
RELIANCE 63
TITAN 09
INFOSYS 07
IOC 05
EICHER MOTORS 03
TOTAL 87
The Draggers
HDFC BANK 10
HDFC 09
HDFC LIFE 06
HUL 05
BHARTI AIRTEL 02
TOTAL 32
Lifter - Draggers = +55
The towering presence of RELIANCE is what changed the fortunes of NIFTY.
POSITIVES
RELIANCE soared and closed the week in style at a new ATH.
INFOSYS restored the 1700 level and is now above its 200 DMA.
Despite the negative news, MARUTI closed higher and at one stage looked set to retest 7000.
FIIs DIIs are both Net Buyers.
NEGATIVES
BANK NIFTY continues to underperform.
HDFC triplets were on the other side of RELIANCE. They perhaps tried to justify their might.
TRADING RANGE FOR WB 06-09-21
17000-17200 is the support base. I do not know what the upper levels may be.
BANK NIFTY support stays at 36200-400 and resistance at 37000-37200.
INSIGHT / OBSERVATIONS
The NIFTY rally is now becoming a stock driven rally possibly indicating exhaustion at higher levels and the coming week may see some profit booking.
Today it was RELIANCE and next week it could be INFOSYS and HDFC family.
It is time to turn cautious until BANK NIFTY closes well above 37200 as the index has the potential to drag NIFTY and upset the party.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
03-09-21
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.
