NIFTY 50 EOD ANALYSIS -11-10-21
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 17867.55
H 18041.95
L 17839.10
C 17945.95
EOD - +50.75 points /+0.28%
SGX Nifty at 1930h =20points
FII DII = -1676 Crores.
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened a mild gap up and then sold off to 8-10 low level and then, made a strong and sustained recovery to clear 18000 in style and then topped 18040 as well.
However, by then FTSE had opened and the usual nervousness walked in and then there was a sell-off over the next 3 hours.
Yet again, Nifty ended the day 90+ points below the ATH level achieved during the day.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 72
Top 5 Draggers contributed = 87
Net = -15
POSITIVES
Nifty hit an All Time High above 18000.
Nifty ended at yet another ATH close.
HDFC was very volatile but settled in the green on an EOD basis.
HDFC Bank seems to be pricing in a good result like how TCS did.
Bank Nifty hit a new ATH and also ended at a new ATH.
NEGATIVES
IT big heads dragged Nifty in a big way.
I do not recall TCS falling more than 3% post results in the recent past. Though this was to happen as it was at a very critical level below 4000.
Reliance lost more than 60 points after hitting an ATH of 2720.
TRADING RANGE FOR the coming week
Nifty 17700-750 is the support base. I am not sure about the resistance levels as price action in Infosys, Wipro, as well as HDFC Bank may keep driving Nifty as they get ready to receive their answer papers during the next few days.
Bank Nifty Support = 37500-700 appears to be a good support area. Since the ATH was hit today, I will let the index play its game for a couple of days and see where it ends the week before commenting on any resistance levels.
INSIGHTS / OBSERVATIONS
Nifty low for the day was just 1 point below 8-10 low and high for the day was 100 points above 8-10 high and yet Nifty managed to close only 50 points above 8-10 Close.
This seems to be a mathematical play!
The contribution by Nifty top 5 performers fell short by 15 points from the top 5 draggers of the Index. This is the kind of weakness and negativity that was driven by the IT index and that is why the subject line of the post.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
11-10-21
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 17867.55
H 18041.95
L 17839.10
C 17945.95
EOD - +50.75 points /+0.28%
SGX Nifty at 1930h =20points
FII DII = -1676 Crores.
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened a mild gap up and then sold off to 8-10 low level and then, made a strong and sustained recovery to clear 18000 in style and then topped 18040 as well.
However, by then FTSE had opened and the usual nervousness walked in and then there was a sell-off over the next 3 hours.
Yet again, Nifty ended the day 90+ points below the ATH level achieved during the day.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 72
Top 5 Draggers contributed = 87
Net = -15
POSITIVES
Nifty hit an All Time High above 18000.
Nifty ended at yet another ATH close.
HDFC was very volatile but settled in the green on an EOD basis.
HDFC Bank seems to be pricing in a good result like how TCS did.
Bank Nifty hit a new ATH and also ended at a new ATH.
NEGATIVES
IT big heads dragged Nifty in a big way.
I do not recall TCS falling more than 3% post results in the recent past. Though this was to happen as it was at a very critical level below 4000.
Reliance lost more than 60 points after hitting an ATH of 2720.
TRADING RANGE FOR the coming week
Nifty 17700-750 is the support base. I am not sure about the resistance levels as price action in Infosys, Wipro, as well as HDFC Bank may keep driving Nifty as they get ready to receive their answer papers during the next few days.
Bank Nifty Support = 37500-700 appears to be a good support area. Since the ATH was hit today, I will let the index play its game for a couple of days and see where it ends the week before commenting on any resistance levels.
INSIGHTS / OBSERVATIONS
Nifty low for the day was just 1 point below 8-10 low and high for the day was 100 points above 8-10 high and yet Nifty managed to close only 50 points above 8-10 Close.
This seems to be a mathematical play!
The contribution by Nifty top 5 performers fell short by 15 points from the top 5 draggers of the Index. This is the kind of weakness and negativity that was driven by the IT index and that is why the subject line of the post.
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
11-10-21
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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