Indices fall significantly amidst increased volatilityNIFTY 50 EOD ANALYSIS 13-12-21
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 17619.10
H 17639.50
L 17355.95
C 17368.25
EOD -143.50 points / -0.82%
SGX Nifty 13-12-21 @ 1920h = -8 points
FII DII = -1392 Crores
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a good gap-up, made efforts to consolidate above 17600, but failed to do so and broke 17600.
And then, the usual sell-off started but in a slow-paced manner as it drifted towards lower levels.
Soon after noon, Nifty fell 70+ points in a matter of 5 minutes and that changed the hopes of a close around the close of 10-12.
Nifty has now made a higher high but somehow managed to make a lower low as well. This is quite an unusual situation in a market that is trying to restore its direction towards the beginning of the bull market line.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 16
Top 5 Draggers contributed = 88
Net = -72
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 57
Top 3 Draggers contributed = 189
Net = -132
POSITIVES
Axis Bank is the only leading scrip which is standing tall on a day when the indices have reversed the gains made in the last few sessions
There is nothing more that can be stated as a positive.
NEGATIVES
Nifty ended below 17400 and Bank Nifty ended below 37000 - what was a positive for the 10-12 session is now the negative - so support has become a resistance.
India Vix has once again moved up leading to increased volatility.
The top lifters of Nifty and Bank Nifty could barely contribute which is not a good sign at all.
FII DII data is net negative.
TRADING RANGE FOR 14 Dec 21
Nifty Support = 17200-300 may well be the new base.
Nifty resistance = 17400-450-500-550-600 on a closing basis.
Bank Nifty Support = 36200-500-800
Bank Nifty resistance = 37000-200-500-700
INSIGHTS / OBSERVATIONS
Many were elated as SGX ended the last week above 17600 and the spot opened in our market at 17619 so many long positions would have been created in line with the positive global cues and US markets also closing on a high.
However, that would have been short lived since in line with what has now become the norm, the sell-off began and on the first day of the week, it was quite intense. Many of the traders may have been trapped as Nifty kept breaking supports with ease and in slow paced market moves.
Bank Nifty seems to have a lot of soft corners for 36800 area as it has visited the surrounding areas many times in the last few sessions. This is yet again indicating that there is inherent weakness in some of the leading scrips which have found comfort in making range bound moves only for now.
Bajaj twins from the Nifty pack have become a regular feature in the lifters or laggards. Somehow, they make it a point to appear on and off in these two areas.
The range for the day for the tradable indices have more than doubled. This is a good sign for the traders but it has also resulted in increased volatility.
Bank Nifty ended 180 points lower but the interesting thing is that the top 3 draggers contributed 132 of these points.
What do you feel about this?
Here is the video link --
Thank you, and Happy Money Making!
Umesh
13-12-21
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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