Energy Crisis takes the Force out of Nifty - slips below 17600
NIFTY 50 EOD ANALYSIS -06-10-21
Apology:-- Yesterday’s post had incorrectly mentioned that Nifty hits a new ATH and closed at a new ATH. This had occurred due to some issues with the device and the doc file got corrupted. I am thankful to those who pointed out the error and still liked the contents.
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 17861.50
H 17884.60
L 17613.15
C 17646.00
EOD -176.3 points / -0.97%
SGX Nifty @ 1850h 17655 / +25 points
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a mild gap-up and hit the day’s high around the resistance below 17900 and then broke the P Close.
It bounced back from there and retested the high area and then soon after FTSE opened in the strong negative, the sell-off began.
There was some recovery from the support line of 17710-15 which was sold in to twice and then Nifty drifted towards 17600.
The ended at 17646 which was almost 1% down from the P Close.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 26
Top 5 Draggers contributed = 74
Net = -48
POSITIVES
Hdfc twins ended in the green and saved the Indices from sliding further and stopped them from creating more panic.
NEGATIVES
It is very easy - except for the positive, it is all negative.
VIX shot up 5%+.
FII-DIIs are net sellers for 1800 Crores.
TRADING RANGE FOR 6-10-21
Nifty 17600-650 was put to litmus test and tomorrow being weekly expiry, I am placing another lower-level support at 17550. Resistance regrettably are at every nook and corner of the charts.
Bank Nifty Support = 37200-400 was well respected but in view of the weekly expiry, a lower level support of 37000-37200 is also added. Resistance 37800-38000-38200.
INSIGHTS / OBSERVATIONS
I now need to learn how to read and trade FTSE as Nifty is doing only that. After 1230h for now and from Oct end, from 1330h, Nifty would follow FTSE only.
I am wondering if we should list the FTSE-IN index on NSE for AM trading!
I know global cues and crisis have some impact on our markets, but what I am unable to gather is in what way would it impact our market to an extent that scrips start falling like a pack of cards!
Look at how Reliance and ICICI Bank have fallen from their day high levels!
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
6-10-21
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.
---
Apology:-- Yesterday’s post had incorrectly mentioned that Nifty hits a new ATH and closed at a new ATH. This had occurred due to some issues with the device and the doc file got corrupted. I am thankful to those who pointed out the error and still liked the contents.
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 17861.50
H 17884.60
L 17613.15
C 17646.00
EOD -176.3 points / -0.97%
SGX Nifty @ 1850h 17655 / +25 points
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a mild gap-up and hit the day’s high around the resistance below 17900 and then broke the P Close.
It bounced back from there and retested the high area and then soon after FTSE opened in the strong negative, the sell-off began.
There was some recovery from the support line of 17710-15 which was sold in to twice and then Nifty drifted towards 17600.
The ended at 17646 which was almost 1% down from the P Close.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 26
Top 5 Draggers contributed = 74
Net = -48
POSITIVES
Hdfc twins ended in the green and saved the Indices from sliding further and stopped them from creating more panic.
NEGATIVES
It is very easy - except for the positive, it is all negative.
VIX shot up 5%+.
FII-DIIs are net sellers for 1800 Crores.
TRADING RANGE FOR 6-10-21
Nifty 17600-650 was put to litmus test and tomorrow being weekly expiry, I am placing another lower-level support at 17550. Resistance regrettably are at every nook and corner of the charts.
Bank Nifty Support = 37200-400 was well respected but in view of the weekly expiry, a lower level support of 37000-37200 is also added. Resistance 37800-38000-38200.
INSIGHTS / OBSERVATIONS
I now need to learn how to read and trade FTSE as Nifty is doing only that. After 1230h for now and from Oct end, from 1330h, Nifty would follow FTSE only.
I am wondering if we should list the FTSE-IN index on NSE for AM trading!
I know global cues and crisis have some impact on our markets, but what I am unable to gather is in what way would it impact our market to an extent that scrips start falling like a pack of cards!
Look at how Reliance and ICICI Bank have fallen from their day high levels!
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
6-10-21
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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