Imbalance in Indices may lead to further sell off NIFTY 50 EOD ANALYSIS 24-11-21
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 17550.05
H 17600.60
L 17354.00
C 17415.05
EOD -88.25 points /-0.50%
SGX Nifty 24-11-21 @ 1905h = -53 points
FII DII = -1313 Crores
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened gap up and as expected immediately sold off to retest the close of 23-11. It then took support and went up and hit a resistance around 17572.
It then fell back towards 17500 and then retested 17585-17600 area 3 times and failed to clear the line and as soon as FTSE opened, it tanked 225+ points in a relentless fall.
It even broke 17400 to make another low below it.
On a closing basis, it has managed to make a higher and a higher low. In a trending market, such insights are good but in the present market condition, it is not at all a reliable insight or an indicator of bullishness.
Bank Nifty outperformed Nifty today.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 46
Top 5 Draggers contributed = 80
Net = -34
POSITIVES
Nifty managed to retest 17600 and closed above 17400.
Bank Nifty closed above 37400.
Bank Nifty low was above 37200 which is a good sign.
ICICI Bank and Kotak Bank have done well today and helped the Nifty as well as Bank Nifty to steady.
NEGATIVES
When Infosys, Reliance, and HDFC are the top 3 losers, it is hard to have a positive close and their negative influence spreads to other scrips as well.
Nifty was more volatile than Bank Nifty today.
India Vix declined significantly, but it is not recording the intense selling pressure that was witnessed in Nifty.
TRADING RANGE FOR 25-26 November 2021
So Nifty support for the week unless broken on the downside appears to be around 17175-200.
It seems 17600 is likely to be a big hurdle to clear for now.
Bank Nifty supports 36500-37000 and resistances are plenty and more.
INSIGHTS / OBSERVATIONS
Nifty ended the day down 88 points and of these, 80 points came from the top 5 draggers.
Nifty ended -88 and Bank Nifty +170. Based on my reading, Bank Nifty should have been around -250 to -270. However, Bank Nifty ended +170 so a gap of 440! Not sure who will catch up with whom on the weekly expiry day!!
Here are the links to 2 of my tweets related to how markets were today:
Since FIIs have sold heavily, markets could sell off at the open again. And then it would await directions from FTSE and in the last hour or so, weekly expiry theatrics will be on display.
What do you feel about this?
Here is the video link --
Thank you, and Happy Money Making!
Umesh
24-11--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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