NIFTY 50 EOD ANALYSIS 20-10-21
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 18439.90
H 18458.30
L 18209.35
C 18266.60
EOD - -152.15 points /-0.83%
India VIX = 18.31 / +5%
SGX Nifty @ 1950h = +7 points
FII DII = Not updated till 1950h - more likely to be in the Red in view of continued sell-off.
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a mild gap up and then fell more than 100 points and then rallied it back to the day high and then, fell nearly 250 points from there in wide spread selling.
India VIX shot up adding to the wild swings which further aggravated the choppiness.
Nifty made a low of 18209 indicating a near 400 point from the high of 18604 hit in the earlier session.
Nifty finally ended at 18266 clearly making lower highs and lower lows.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 24
Top 5 Draggers contributed = 72
Net = -48
POSITIVES
Despite extreme volatility, Bank Nifty remained relatively strong and SBIN was the lone heavyweight and was mildly supported by Axis Bank.
NEGATIVES
Except for the above, it was all negative. There was too much negativity in the market soon after the indices hit a new high in the earlier session.
TRADING RANGE FOR 20-22 October 2021
Nifty = 18200 line proved to be too close a call as Nifty fell today. I am keeping the support line at 18200 even for tomorrow and will revise based on the moves tomorrow. The resistance lines start from 18300 onwards.
Bank Nifty = 39000-39200 as the support band and 39700-900-40000 as the resistances lines.
INSIGHTS / OBSERVATIONS
A yet another day of dramatic fall in Nifty even as Bank Nifty was positive for the most part of the day before it also caught a cold. The good thing was that Bank Nifty ended almost flat.
I am wondering if the bull markets are really like this? I have not experienced such a bull market since the time I have been writing such posts which is about 3 years now.
TCS keeps getting hit as it has now fallen 400 points from its ATH. It would be interesting to see by when it comes out of the negativity that has engulfed it since its results came out.
The same goes for HDFC Bank - it almost went to 1700 and then fell 30+ points and placed the indices under pressure.
What do you feel about this?
Here is the video link --
Thank you, and Happy Money Making!
Umesh
20-10-21
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 18439.90
H 18458.30
L 18209.35
C 18266.60
EOD - -152.15 points /-0.83%
India VIX = 18.31 / +5%
SGX Nifty @ 1950h = +7 points
FII DII = Not updated till 1950h - more likely to be in the Red in view of continued sell-off.
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a mild gap up and then fell more than 100 points and then rallied it back to the day high and then, fell nearly 250 points from there in wide spread selling.
India VIX shot up adding to the wild swings which further aggravated the choppiness.
Nifty made a low of 18209 indicating a near 400 point from the high of 18604 hit in the earlier session.
Nifty finally ended at 18266 clearly making lower highs and lower lows.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 24
Top 5 Draggers contributed = 72
Net = -48
POSITIVES
Despite extreme volatility, Bank Nifty remained relatively strong and SBIN was the lone heavyweight and was mildly supported by Axis Bank.
NEGATIVES
Except for the above, it was all negative. There was too much negativity in the market soon after the indices hit a new high in the earlier session.
TRADING RANGE FOR 20-22 October 2021
Nifty = 18200 line proved to be too close a call as Nifty fell today. I am keeping the support line at 18200 even for tomorrow and will revise based on the moves tomorrow. The resistance lines start from 18300 onwards.
Bank Nifty = 39000-39200 as the support band and 39700-900-40000 as the resistances lines.
INSIGHTS / OBSERVATIONS
A yet another day of dramatic fall in Nifty even as Bank Nifty was positive for the most part of the day before it also caught a cold. The good thing was that Bank Nifty ended almost flat.
I am wondering if the bull markets are really like this? I have not experienced such a bull market since the time I have been writing such posts which is about 3 years now.
TCS keeps getting hit as it has now fallen 400 points from its ATH. It would be interesting to see by when it comes out of the negativity that has engulfed it since its results came out.
The same goes for HDFC Bank - it almost went to 1700 and then fell 30+ points and placed the indices under pressure.
What do you feel about this?
Here is the video link --
Thank you, and Happy Money Making!
Umesh
20-10-21
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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