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Nifty ends at 17401, have the new bases been formed?

NSE:NIFTY   Nifty 50 Index
NIFTY 50 EOD ANALYSIS 02-12-21

In this post, I talk about the analysis for the day and the trading range for tomorrow. The video discusses with the help of the charts how the indices as well as leading stocks performed during the day and their likely play tomorrow.

O 17183.20

H 17420.25

L 17149.30

C 17401.65

EOD +234.75 points / +1.37%

India VIX 18.09/-6.99%

SGX Nifty 02-12-21 @ 1755h = -60 points

FII DII = Not yet available

CHART BASED CONCLUSIONS using 5 Minutes Chart

Nifty opened with a mild gap up and then immediately made an attempt to break the close of yesterday but found support around the level and then recovered well.

It then made a sustained rally more or less uninterrupted till 17325 then fell around 40 points and then again retested the level of 17320+.

Then there was a sudden fall in Reliance which brought Nifty below 17300 but it recovered very well and then ended the day closer to the high of the day at 17420.

Both the indices have made higher highs, and higher lows.

NIFTY WEIGHT LIFTERS & DRAGGERS

Top 5 Lifters contributed = 104

Top 5 Draggers contributed = 09

Net = +95

BANK NIFTY WEIGHT LIFTERS & DRAGGERS

Top 3 Lifters contributed = 170

Top 2 Draggers contributed = 53

Net = +117


POSITIVES

Nifty ended just above 17400 and closer to the day high of 17420.

The sudden change of colors was due to the sustained efforts of the HDFC twins and the 2 Nifty twins of Infosys and TCS that have helped Nifty come out of the negative sentiments.

Bank Nifty managed to close just above 36500.

India Vix has fallen 7%.

NEGATIVES

ICICI Bank and Axis Bank chose to stay away from the party and that is what caused Bank Nifty to underperform.

TRADING RANGE FOR 03 Dec 21

Nifty Support = 17000-17200

Nifty Resistance = 17425-500-600.

Bank Nifty Support = 35800-36000

Bank Nifty Resistance = 36600-800-37000


INSIGHTS / OBSERVATIONS

Bank Nifty OHLC was back again above 36000- the 4 previous sessions had lows above 35000+. This signals that the new base may have been built around 35500-36000.

When Nifty falls 300 points there are many reasons out there and the majority starts guessing when it will stop. Now that it went up by 230+ points and ended the day at 17401, everyone started wondering whether this rally would continue!

Perhaps that is why, it is said that - A bull market climbs the Wall of Worries!

17400 has been reclaimed after 5 sessions when the close was 17415 - that may well prove to be the next immediate hurdle.

Bank Nifty has underperformed Nifty today by 500+ points as it generally rises or falls in the ratio of 1 Nifty point = 3 Bank Nifty points.

Nifty soaring 234 points on a day when the European markets are in the red is indicative of the fact that the rally may not sustain and FIIs who may have bought in the Cash market may again Sell tomorrow. So the weekly close and more importantly the open on Monday, 06-12 is going to be crucial.

An interesting insight on the Bank Nifty close is given in this tweet:



What do you feel about this?

Here is the video link --


Thank you, and Happy Money Making!

Umesh
2-12-21

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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