NIFTY 50 EOD ANALYSIS -05-10-21
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 17661.35
H 17833.45
L 17640.90
C 17822.30
EOD +131.05 points / +0.74%
CHART BASED CONCLUSIONS using 5 Minutes Chart
And finally, Nifty ended the day above 17800, registered a new ATH as well as a new ATH close.
Nifty opened mildly gap-down and went into consolidation until FTSE opened and when it was trading in the green, Nifty started seeing traction and the resistance around 17715 was broken with a big candle on a 5-minute chart.
And then there was no stopping Nifty as it scaled newer heights with ease.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 72
Top 5 Draggers contributed = 17
POSITIVES
Nifty made a new ATH and also closed at a new ATH.
Reliance ended above 2600 which is another ATH for the scrip and one of the main drivers for the rally in Nifty.
Bank Nifty was showing signs of weakness in the AM session but the PM session saw Bank Nifty recovering in a smart manner.
India VIX fell again indicating a lower probability of a big and wild swing.
Hdfc twins ended in the green though they moved in a narrow range.
NEGATIVES
Icici Bank and Kotak Bank were responsible for not letting Bank Nifty freely.
Bank Nifty underperformed to Nifty due to the above.
Infosys could not close above 1700 and as long as it trades below the level, it has the tendency to drift towards 1660 which is likely to put pressure on Nifty.
TRADING RANGE FOR 6-10-21
Nifty 17600-650 is now the new support line and resistances would be at 17850-900-950.
Bank Nifty Support = 37200-400 Resistance 37800-38000-38200.
INSIGHTS / OBSERVATIONS
Why do we feel happy whenever an index or a scrip hits a new ATH and or ends at a new ATH?
It is the positivity factor - it releases a great deal of positivity which is required by traders/investors who have put in their hard-earned money in the markets either to make a living out of it and or to create wealth.
Bank Nifty was not in its elements - this is the key for any further upside in Nifty. If it plays the catch-up game, Nifty may be able to hit 18000 during this week itself. Such is the power of Bank Nifty!
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
5-10-21
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 17661.35
H 17833.45
L 17640.90
C 17822.30
EOD +131.05 points / +0.74%
CHART BASED CONCLUSIONS using 5 Minutes Chart
And finally, Nifty ended the day above 17800, registered a new ATH as well as a new ATH close.
Nifty opened mildly gap-down and went into consolidation until FTSE opened and when it was trading in the green, Nifty started seeing traction and the resistance around 17715 was broken with a big candle on a 5-minute chart.
And then there was no stopping Nifty as it scaled newer heights with ease.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 72
Top 5 Draggers contributed = 17
POSITIVES
Nifty made a new ATH and also closed at a new ATH.
Reliance ended above 2600 which is another ATH for the scrip and one of the main drivers for the rally in Nifty.
Bank Nifty was showing signs of weakness in the AM session but the PM session saw Bank Nifty recovering in a smart manner.
India VIX fell again indicating a lower probability of a big and wild swing.
Hdfc twins ended in the green though they moved in a narrow range.
NEGATIVES
Icici Bank and Kotak Bank were responsible for not letting Bank Nifty freely.
Bank Nifty underperformed to Nifty due to the above.
Infosys could not close above 1700 and as long as it trades below the level, it has the tendency to drift towards 1660 which is likely to put pressure on Nifty.
TRADING RANGE FOR 6-10-21
Nifty 17600-650 is now the new support line and resistances would be at 17850-900-950.
Bank Nifty Support = 37200-400 Resistance 37800-38000-38200.
INSIGHTS / OBSERVATIONS
Why do we feel happy whenever an index or a scrip hits a new ATH and or ends at a new ATH?
It is the positivity factor - it releases a great deal of positivity which is required by traders/investors who have put in their hard-earned money in the markets either to make a living out of it and or to create wealth.
Bank Nifty was not in its elements - this is the key for any further upside in Nifty. If it plays the catch-up game, Nifty may be able to hit 18000 during this week itself. Such is the power of Bank Nifty!
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
5-10-21
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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