NIFTY 50 EOD ANALYSIS -08-09-21
IN SUMMARY
O / H / L / C
17375.75 / 17383.4 / 17254.20 / 17353.5
H-L = 149 points
VIX 14.41 / -3.29%
FII DII: -802 Crores
Likely open: BANK NIFTY holds the key. Based on the numbers looks a flat to a positive open.
CHART BASED CONCLUSIONS
NIFTY played negative today and did not even bother to go past the opening high made and ended the day just below the P Close.
In the process, it has not only done a lower high but also made a lower low by drifting towards 17250 and dangerously close it.
Soon as Europe opened, the sell-off started and lasted for an hour or so, and then, there was the usual jerks-driven relief rally only to end flat.
On the daily charts, it has formed a hammer pattern indicating good bounce from the lower areas.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
KOTAK BANK 03
HDFC BANK 03
ICICI BANK 02
TITAN 02
HUL 01
TOTAL 11
The Draggers
NESTLE 04
INFOSYS 04
TCS 04
BAJAJ FINANCE 03
RELIANCE 03
TOTAL 18
Lifter - Draggers = -07
The above is what mattered in the end. It looks like the rest of the scrips had no role to play or it was too insignificant by EOD.
POSITIVES
NIFTY ended flat and recovered more than 90 points after the sell-off.
BANK NIFTY changed the corner and was the savior for NIFTY.
Even though the private banks have not contributed significantly, their not being negative helped the indices to maintain their levels.
RELIANCE and HDFC recovered well from their respective lows which came in handy in ensuring that NIFTY closes flat.
NEGATIVES
NIFTY could not go anywhere near 17400.
NIFTY breached the recent swing lows and drifted towards 17250.
INFOSYS and TCS have been showing continued weakness.
MARUTI has been falling yet again after a good recovery a couple of sessions ago.
FIIs DIIs remain net sellers.
TRADING RANGE FOR 08-09-21
17000-17200 is the support base.17400-450-500 may be the resistance area for NIFTY.
BANK NIFTY support stays at 36200-400 and resistance at 37000-37200.
INSIGHT / OBSERVATIONS
The price action in INFOSYS appeared to be managed if one looks at the candles for the last 2 hours. There were spikes and sell-off as if 1700 CE writers had a point or two to prove in ending the day below 1700.
MARUTI fell more than 1.5% but it seems to have made no impact on NIFTY which is indeed surprising as, at one stage, the fall was close to 100 points.
The star of the day was KOTAK BANK as it almost single-handedly changed the tide for NIFTY and therefore BANK NIFTY. The strong up move prompted other banks to also chip in. It now needs to be seen if it can hold on to the momentum possibly created by it being included in the LIC IPO proceedings.
Interesting expiry tomorrow - will the God that rings in Auspicious Beginnings help NIFTY close the week at a new ATH? Or will the IT biggies with RELIANCE like to keep dragging NIFTY?
Wait and Watch!
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
08-09-21
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
17375.75 / 17383.4 / 17254.20 / 17353.5
H-L = 149 points
VIX 14.41 / -3.29%
FII DII: -802 Crores
Likely open: BANK NIFTY holds the key. Based on the numbers looks a flat to a positive open.
CHART BASED CONCLUSIONS
NIFTY played negative today and did not even bother to go past the opening high made and ended the day just below the P Close.
In the process, it has not only done a lower high but also made a lower low by drifting towards 17250 and dangerously close it.
Soon as Europe opened, the sell-off started and lasted for an hour or so, and then, there was the usual jerks-driven relief rally only to end flat.
On the daily charts, it has formed a hammer pattern indicating good bounce from the lower areas.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
KOTAK BANK 03
HDFC BANK 03
ICICI BANK 02
TITAN 02
HUL 01
TOTAL 11
The Draggers
NESTLE 04
INFOSYS 04
TCS 04
BAJAJ FINANCE 03
RELIANCE 03
TOTAL 18
Lifter - Draggers = -07
The above is what mattered in the end. It looks like the rest of the scrips had no role to play or it was too insignificant by EOD.
POSITIVES
NIFTY ended flat and recovered more than 90 points after the sell-off.
BANK NIFTY changed the corner and was the savior for NIFTY.
Even though the private banks have not contributed significantly, their not being negative helped the indices to maintain their levels.
RELIANCE and HDFC recovered well from their respective lows which came in handy in ensuring that NIFTY closes flat.
NEGATIVES
NIFTY could not go anywhere near 17400.
NIFTY breached the recent swing lows and drifted towards 17250.
INFOSYS and TCS have been showing continued weakness.
MARUTI has been falling yet again after a good recovery a couple of sessions ago.
FIIs DIIs remain net sellers.
TRADING RANGE FOR 08-09-21
17000-17200 is the support base.17400-450-500 may be the resistance area for NIFTY.
BANK NIFTY support stays at 36200-400 and resistance at 37000-37200.
INSIGHT / OBSERVATIONS
The price action in INFOSYS appeared to be managed if one looks at the candles for the last 2 hours. There were spikes and sell-off as if 1700 CE writers had a point or two to prove in ending the day below 1700.
MARUTI fell more than 1.5% but it seems to have made no impact on NIFTY which is indeed surprising as, at one stage, the fall was close to 100 points.
The star of the day was KOTAK BANK as it almost single-handedly changed the tide for NIFTY and therefore BANK NIFTY. The strong up move prompted other banks to also chip in. It now needs to be seen if it can hold on to the momentum possibly created by it being included in the LIC IPO proceedings.
Interesting expiry tomorrow - will the God that rings in Auspicious Beginnings help NIFTY close the week at a new ATH? Or will the IT biggies with RELIANCE like to keep dragging NIFTY?
Wait and Watch!
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
08-09-21
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.
