NIFTY 50 EOD ANALYSIS -07-09-21
IN SUMMARY
O / H / L / C
17401.55 / 17436.5 / 17287.00 / 17362.1
H-L = 149 points
VIX 14.9 / -0.34%
FII DII: -283 Crores
Likely open: Flat to positive if BANK NIFTY turns green. Today’s low is crucial for the short term and for the week as this is a short week with only 2 sessions remaining before the week ends.
CHART BASED CONCLUSIONS
NIFTY crossed 17400 yet again and made a new high at 17436.
During the day, it remained very volatile on account of BANK NIFTY and even broke 17300 momentarily and then hit a fresh ATH.
However, that was also sold in to and the day ended on a flat note.
During the day, NIFTY took support from 200 MA on the 5-minute chart.
On the daily charts, NIFTY has formed yet another Doji / Spinning top indicating indecisive approach.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
HDFC 27
RELIANCE 11
BHARTI AIRTEL 06
ITC 04
HDFC BANK 02
TOTAL 50
The Draggers
INFOSYS 18
TCS 08
BAJAJ FINANCE 06
ICICI BANK 06
AXIS BANK 06
TOTAL 44
Lifter - Draggers = +06
POSITIVES
NIFTY hit a fresh ATH.
HDFC made a roaring comeback as a leader and closed above 2800 psycho level.
RELIANCE also managed to hold on to the 2400+ levels and closed above the earlier close.
HDFC BANK made a good recovery after the morning shake-out and help prevent a further slide in BANK NIFTY.
NEGATIVES
BANK NIFTY keeps underperforming and is facing the Sell on Rise type of situation.
After a smart recovery by INFOSYS yesterday, it almost reversed all the gains impacting TCS as well.
NIFTY unable to close in green leave aside above 17400 is not a good sign.
FIIs DIIs are both net sellers.
TRADING RANGE FOR WB 07-09-21
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
Despite HDFC BANK bouncing back 20+ points from the lows, BANK NIFTY ended way below the P Close. This is surprising and possibly indicates how important ICICI BANK and AXIS BANK have become for the index.
Amidst pressure from BANK NIFTY, NIFTY could not hold 17300 levels also and dipped for a while and then recovered smartly.
I am wondering what would happen if US markets were non-existent? Clearly, in the absence of any clues from the big brother, our indices chose to play safe and ended flat to negative.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
07-09-21
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
17401.55 / 17436.5 / 17287.00 / 17362.1
H-L = 149 points
VIX 14.9 / -0.34%
FII DII: -283 Crores
Likely open: Flat to positive if BANK NIFTY turns green. Today’s low is crucial for the short term and for the week as this is a short week with only 2 sessions remaining before the week ends.
CHART BASED CONCLUSIONS
NIFTY crossed 17400 yet again and made a new high at 17436.
During the day, it remained very volatile on account of BANK NIFTY and even broke 17300 momentarily and then hit a fresh ATH.
However, that was also sold in to and the day ended on a flat note.
During the day, NIFTY took support from 200 MA on the 5-minute chart.
On the daily charts, NIFTY has formed yet another Doji / Spinning top indicating indecisive approach.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
HDFC 27
RELIANCE 11
BHARTI AIRTEL 06
ITC 04
HDFC BANK 02
TOTAL 50
The Draggers
INFOSYS 18
TCS 08
BAJAJ FINANCE 06
ICICI BANK 06
AXIS BANK 06
TOTAL 44
Lifter - Draggers = +06
POSITIVES
NIFTY hit a fresh ATH.
HDFC made a roaring comeback as a leader and closed above 2800 psycho level.
RELIANCE also managed to hold on to the 2400+ levels and closed above the earlier close.
HDFC BANK made a good recovery after the morning shake-out and help prevent a further slide in BANK NIFTY.
NEGATIVES
BANK NIFTY keeps underperforming and is facing the Sell on Rise type of situation.
After a smart recovery by INFOSYS yesterday, it almost reversed all the gains impacting TCS as well.
NIFTY unable to close in green leave aside above 17400 is not a good sign.
FIIs DIIs are both net sellers.
TRADING RANGE FOR WB 07-09-21
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
Despite HDFC BANK bouncing back 20+ points from the lows, BANK NIFTY ended way below the P Close. This is surprising and possibly indicates how important ICICI BANK and AXIS BANK have become for the index.
Amidst pressure from BANK NIFTY, NIFTY could not hold 17300 levels also and dipped for a while and then recovered smartly.
I am wondering what would happen if US markets were non-existent? Clearly, in the absence of any clues from the big brother, our indices chose to play safe and ended flat to negative.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
07-09-21
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.
