Weekly Analysis of Indices as on 14-1-22

Jan 17, 2022

DATA DRIVEN ANALYSIS OF NIFTY & BANK NIFTY FOR THE WEEK ENDING 14-1-22

This is a weekly post where I briefly capture the key highlights of the 2 leading indices. This post is supported by a video that takes you through the details of how I have arrived at the analysis. I encourage you to view the video as well since not everything can be captured in a document form.

I hope that this effort would help the readers and viewers to get a crisp idea about what happened in the markets over a period of one week.

Important -
The indices have performed fairly well this week and the weekly close is also at a good level. The results season has begun on a good note with both Infosys and TCS posting good numbers and closing the week at their respective All Time High. The market would now be driven more by the release of the quarterly results. It is better to trade/invest in results bound scrips only after the results and not in anticipation of a good outcome.

The market seems to have for now discounted the Covid as well as Omicron related impacts and seems to be getting in to the pre-Budget rally mode.

BANK NIFTY

Since comparison with 1-1 data is not possible, I have used 3-1-22 which was the first trading day of the year as well as the week.

EOD on 3-1-22 = 36421

EOD on 14-1-22 = 38370 up by 1949 points or 5.35% from 3-1-22

The highest level in the week ending 14-1-22 = 38851 on 12-1-22

The lowest level in the week ending 7-1-22 = 37929 on 10-1-22

Difference Highest - Lowest = 929 points or 2.44% from the lowest level

In the last week, Bank Nifty has made an upward move of 630 points or 1.76% which is a good move, but it has underperformed in comparison to Nifty.

NIFTY

Since comparison with 1-1 data is not possible, I have used 3-1-22 which was the first trading day of the year as well as the week.

EOD on 3-1-22 = 17625

EOD on 14-1-22 = 18255 up by 630 points or 3.57% from 3-1-22

The highest level in the week ending 14-1-22 = 18286 on 14-1-22

The lowest level in the week ending 14-1-22 = 17879 on 10-1-22

Difference Highest - Lowest = 407 points or 2.27% from the lowest level

In the last one week Nifty has made an up move of 443 points or 2.57% which indicates a continued momentum on the upside.

FII - DII DATA:

JAN 2022 [Till Date]

FIIs = -2922 Crores

DIIs = +7139 Crores

Net is = +4,217 Crores

KEY LEVELS FOR THE INDICES - on closing basis

Bank Nifty

To remain in bullish momentum 38000-38200

Crucial Support - 37400-600

Potential Change of Trend - 37200 and lower

Nifty

To remain in bullish momentum 17900-18100

Crucial Support - 17800-900

Potential Change of Trend - 17800 and lower

I have made some changes to this analysis and have made it more data driven by removing subjective conclusions. This would help those who prefer data driven techniques. Also, my daily market analysis covers all the key points [especially related to Friday analysis] that are not covered in this post.

Here is the video link:
youtu.be/Ekcag1dF5Ow

I hope this change is well received and would be looking forward to receiving your feedback.

Happy Trading/Investing!

Umesh
15-1-22
Not SEBI Regd.
Posted purely for Educational & Informational purposes only.