NIFTY 50 EOD ANALYSIS -17-08-21
IN SUMMARY
O / H / L / C
16545.25 / 16628.55 / 16495.4 / 16614.6
H-L = 133
VIX 13.41 / -0.37%
FII DII: -77 Crores
CHART BASED CONCLUSIONS
Nifty closed above 16600 for the first time and close to the ATH level.
Nifty made a higher high and a higher low.
Nifty was facing resistance near the earlier day’s high and then fell sharply and recovered in the last hour or so.
On daily charts, the candle looks strong with Ok volume.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
INFOSYS 27
TCS 10
HUL 09
NESTLE 08
WIPRO 07
TOTAL 61
The Draggers
HDFC BANK 14
JSW STEEL 08
RELIANCE 06
ADANI PORTS 05
LT 04
TOTAL 37
Lifter - Draggers = 24
This explains why Nifty fell before recovering sharply.
POSITIVES
Nifty made yet another ATH and the first close above 16600.
Nifty 50 IT members rallied behind the index and performed very well. INFOSYS and TCS in particular have been doing well for the past few sessions.
MARUTI as well as TATA MOTORS made a good recovery from their lows.
FIIs selling has reduced compared to yesterday.
NEGATIVES
HDFC BANK and RELIANCE did not end in the green and instead dragged the indices so some sort of pressure is likely unless they reverse.
BANK NIFTY ended once again below 36000 ahead of the expiry day.
Nifty futures trading at a discount to the spot at ATH is quite an unusual situation to have.
TRADING RANGE FOR 18-8-21
Nifty baseline moves up to 1600-450.
BANK NIFTY support base stays at 35600-800 and resistance at 36200-36500.
INSIGHT / OBSERVATIONS
WHen INFOSYS buyback was in the air, it was expected that it would happen around 1750. The day’s high was 1746.9.
Nifty futures trading at a discount to the spot at ATH is quite an unusual situation to have.
What do you feel?
Thank you, and Happy Money Making!
Umesh
17-8-21
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
16545.25 / 16628.55 / 16495.4 / 16614.6
H-L = 133
VIX 13.41 / -0.37%
FII DII: -77 Crores
CHART BASED CONCLUSIONS
Nifty closed above 16600 for the first time and close to the ATH level.
Nifty made a higher high and a higher low.
Nifty was facing resistance near the earlier day’s high and then fell sharply and recovered in the last hour or so.
On daily charts, the candle looks strong with Ok volume.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
INFOSYS 27
TCS 10
HUL 09
NESTLE 08
WIPRO 07
TOTAL 61
The Draggers
HDFC BANK 14
JSW STEEL 08
RELIANCE 06
ADANI PORTS 05
LT 04
TOTAL 37
Lifter - Draggers = 24
This explains why Nifty fell before recovering sharply.
POSITIVES
Nifty made yet another ATH and the first close above 16600.
Nifty 50 IT members rallied behind the index and performed very well. INFOSYS and TCS in particular have been doing well for the past few sessions.
MARUTI as well as TATA MOTORS made a good recovery from their lows.
FIIs selling has reduced compared to yesterday.
NEGATIVES
HDFC BANK and RELIANCE did not end in the green and instead dragged the indices so some sort of pressure is likely unless they reverse.
BANK NIFTY ended once again below 36000 ahead of the expiry day.
Nifty futures trading at a discount to the spot at ATH is quite an unusual situation to have.
TRADING RANGE FOR 18-8-21
Nifty baseline moves up to 1600-450.
BANK NIFTY support base stays at 35600-800 and resistance at 36200-36500.
INSIGHT / OBSERVATIONS
WHen INFOSYS buyback was in the air, it was expected that it would happen around 1750. The day’s high was 1746.9.
Nifty futures trading at a discount to the spot at ATH is quite an unusual situation to have.
What do you feel?
Thank you, and Happy Money Making!
Umesh
17-8-21
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.
