The Good Run comes to an end -Indices slip big time as Vix spike
NIFTY 50 EOD ANALYSIS 28-10-21
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 18187.65
H 18190.70
L 17799.45
C 17857.25
EOD - -353.70 points / -1.94%
India VIX = 17.91 / +6.42%
SGX Nifty 28-10-21 1930h = +58 points
FII DII = Not yet updated
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a mild gap down and then continued its downward journey till the series expired amidst increasing volatility.
In the process, Nifty breached all crucial supports and ended the day at 17857 which was around the Fibonacci level of 61.8%.
This is one of the biggest falls in recent weeks despite the global cues not being very weak.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 18
Top 5 Draggers contributed = 169
Net = -151
POSITIVES
The only saving grace was that Nifty ended above 17800 and Bank Nifty above 39500.
The charts and the stock prices have been thrown in complete disarray and many leading scrips have lost key support levels so we have to see where the indices end tomorrow.
NEGATIVES
There will be a long list of negatives if I start writing. However, there are 2 key negatives that I am listing:
Nifty broke the 18000 psych level very easily.
In the same manner, Bank Nifty broke 40500 and then 40000 and almost broke 39500 with effortless ease.
The free fall in the indices is a cause of concern as we head into the festive days. This time, the indices seem to be ready to spring some surprises! I wish these turn out to be good for the majority.
TRADING RANGE FOR 29 October 2021
Looking at the violent and long-range moves today, I am avoiding stating any levels for tomorrow and would wait for the week to end before drawing up the lines.
INSIGHTS / OBSERVATIONS
40900 PE low for the day was 167
40900 PE ended the day at 1388
Even with 1 lot at risk, the return would have been at max 700%+!!
18200 PE low for the day 52
EOD = 344
Even with 1 lot at risk, the return would have been at max 600%+!!
If you follow Fibonacci Retracements, you would be interested in having a look at this tweet posted a few minutes back:
What do you feel about this?
Here is the video link --
Thank you, and Happy Money Making!
Umesh
28-10-21
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.
---
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 18187.65
H 18190.70
L 17799.45
C 17857.25
EOD - -353.70 points / -1.94%
India VIX = 17.91 / +6.42%
SGX Nifty 28-10-21 1930h = +58 points
FII DII = Not yet updated
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a mild gap down and then continued its downward journey till the series expired amidst increasing volatility.
In the process, Nifty breached all crucial supports and ended the day at 17857 which was around the Fibonacci level of 61.8%.
This is one of the biggest falls in recent weeks despite the global cues not being very weak.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 18
Top 5 Draggers contributed = 169
Net = -151
POSITIVES
The only saving grace was that Nifty ended above 17800 and Bank Nifty above 39500.
The charts and the stock prices have been thrown in complete disarray and many leading scrips have lost key support levels so we have to see where the indices end tomorrow.
NEGATIVES
There will be a long list of negatives if I start writing. However, there are 2 key negatives that I am listing:
Nifty broke the 18000 psych level very easily.
In the same manner, Bank Nifty broke 40500 and then 40000 and almost broke 39500 with effortless ease.
The free fall in the indices is a cause of concern as we head into the festive days. This time, the indices seem to be ready to spring some surprises! I wish these turn out to be good for the majority.
TRADING RANGE FOR 29 October 2021
Looking at the violent and long-range moves today, I am avoiding stating any levels for tomorrow and would wait for the week to end before drawing up the lines.
INSIGHTS / OBSERVATIONS
40900 PE low for the day was 167
40900 PE ended the day at 1388
Even with 1 lot at risk, the return would have been at max 700%+!!
18200 PE low for the day 52
EOD = 344
Even with 1 lot at risk, the return would have been at max 600%+!!
If you follow Fibonacci Retracements, you would be interested in having a look at this tweet posted a few minutes back:
What do you feel about this?
Here is the video link --
Thank you, and Happy Money Making!
Umesh
28-10-21
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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