NIFTY 50 EOD ANALYSIS -23-08-21
IN SUMMARY
O / H / L / C
16592.25 / 16592.5 / 16395.7 / 16496.45
H-L = 197
VIX 13.69 / -2.35%
FII DII: +89 Crores
Likely open: Positive with resistance around 16550-600.
CHART BASED CONCLUSIONS
A 150 point gap-up opening in Nifty was immediately sold in to.
Nifty made a higher and a higher low.
Nifty almost retested the lows of the lows of Friday and then made a good recovery of 100 points but could not hold on to 16500 on a closing basis.
A hammer sort of candle has been created on the daily charts.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
TCS 18
BAJAJ FINANCE 12
RELIANCE 11
HCL TECH 10
BAJAJ FINSERV 09
TOTAL 60
The Draggers
ADANI PORTS 8
GRASIM 6
M&M 5
ITC 4
TATAMOTORS 4
TOTAL 27
Lifter - Draggers = +33
The above explains how Nifty managed to close above the P Close of 16450.
POSITIVES
Nifty made a good recovery of 100 points from the lows.
Nifty closed above 16450.
TCS kept climbing higher and RELIANCE is inching up which is helping Nifty.
BANK NIFTY managed to close above 35100.
HDFC twins have held onto their respective important levels of 2700 and 1500.
NEGATIVES
Nifty failed to close above 16500 and a major barrier for the bulls has been lost for now at 16500-600 range.
BANK NIFTY went lower than the Friday lows and was down 800 points from its high for the day.
FIIs have once again sold in excess of 1,000 Crores indicating some more weakness.
TRADING RANGE FOR W/B 23-8-21
The Nifty baseline stays at 16300-350. The resistances are now from 16500 onwards.
BANK NIFTY support base also slides to 34800-35000 and resistance at 35200-35500.
INSIGHT / OBSERVATIONS
TATAMOTORS has been experiencing unusual selling pressure and has lost more than 10% since it's high earlier in the month.
MARUTI is witnessing very volatile and choppy moves around 6825-6850 and is unable to hold on to 6900+ levels. Though it fell in the last few minutes, it quickly recovered to close around the FIB level which is causing wild swings.
This indicates that there is something for the 4 wheeler manufacturers that is not known to us.
Even on a 5-minute chart, BANK NIFTY looks better placed than NIFTY.
What do you feel?
Thank you, and Happy Money Making!
Umesh
23-8-21
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
16592.25 / 16592.5 / 16395.7 / 16496.45
H-L = 197
VIX 13.69 / -2.35%
FII DII: +89 Crores
Likely open: Positive with resistance around 16550-600.
CHART BASED CONCLUSIONS
A 150 point gap-up opening in Nifty was immediately sold in to.
Nifty made a higher and a higher low.
Nifty almost retested the lows of the lows of Friday and then made a good recovery of 100 points but could not hold on to 16500 on a closing basis.
A hammer sort of candle has been created on the daily charts.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
TCS 18
BAJAJ FINANCE 12
RELIANCE 11
HCL TECH 10
BAJAJ FINSERV 09
TOTAL 60
The Draggers
ADANI PORTS 8
GRASIM 6
M&M 5
ITC 4
TATAMOTORS 4
TOTAL 27
Lifter - Draggers = +33
The above explains how Nifty managed to close above the P Close of 16450.
POSITIVES
Nifty made a good recovery of 100 points from the lows.
Nifty closed above 16450.
TCS kept climbing higher and RELIANCE is inching up which is helping Nifty.
BANK NIFTY managed to close above 35100.
HDFC twins have held onto their respective important levels of 2700 and 1500.
NEGATIVES
Nifty failed to close above 16500 and a major barrier for the bulls has been lost for now at 16500-600 range.
BANK NIFTY went lower than the Friday lows and was down 800 points from its high for the day.
FIIs have once again sold in excess of 1,000 Crores indicating some more weakness.
TRADING RANGE FOR W/B 23-8-21
The Nifty baseline stays at 16300-350. The resistances are now from 16500 onwards.
BANK NIFTY support base also slides to 34800-35000 and resistance at 35200-35500.
INSIGHT / OBSERVATIONS
TATAMOTORS has been experiencing unusual selling pressure and has lost more than 10% since it's high earlier in the month.
MARUTI is witnessing very volatile and choppy moves around 6825-6850 and is unable to hold on to 6900+ levels. Though it fell in the last few minutes, it quickly recovered to close around the FIB level which is causing wild swings.
This indicates that there is something for the 4 wheeler manufacturers that is not known to us.
Even on a 5-minute chart, BANK NIFTY looks better placed than NIFTY.
What do you feel?
Thank you, and Happy Money Making!
Umesh
23-8-21
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.
