Yet again Bank Nifty rescues Nifty from free fall
NIFTY 50 EOD ANALYSIS 22-10-21
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 18230.70
H 18314.25
L 18034.25
C 18114.90
EOD - -63.20 points /-0.35%
India VIX = 17.55 / -2.71%
SGX Nifty 22-10-21 EOD = Flat
FII DII = -1668 Corres
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty yet again underperformed and made a lower high and a lower low.
Nifty is now too close to testing and or breaching 18000 line which is a big psycho level, especially on an EOD basis.
Nifty on daily charts is well placed for a bounce-back as long as the recent lows are held and it keeps trading above 18100.
On the weekly charts, Nifty is still bullish from a positional viewpoint. So no need to panic for the investors.
All that it is doing is giving an opportunity to enter some scrips.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 30
Top 5 Draggers contributed = 51
Net = -21
POSITIVES
Bank Nifty has been the single source of strength for Nifty for now.
It has been able to do so as HDFC Bank, Kotak Bank, ICICI Bank and SBIN have been doing well.
Ahead of its results, Reliance was a bit nervous and that is obvious.
NEGATIVES
Renewed negativity in Infosys is quite unnerving as it made TCS breach 3500 level as well. Now it is down 12.5% from its ATH hit in this very month!
ITC has undone all the good gains that it had made. Clearly, this scrip is losing its shine.
Tata Motors is having cruise control issues so it is better to be careful.
TRADING RANGE FOR 25 October 2021
Nifty made sustained efforts to keep falling and it came close to 18000 make or break line.
So 18000-18050 is now the new line of defense and 18200-250-300 and above are the lines of resistance
Bank Nifty supports at 39000-39200 and no idea about the resistance levels as it has ended above 40000 for the day..
INSIGHTS / OBSERVATIONS
Reliance did not go up as well which is unusual as it has happened in the case of TCS, HDFC Bank, and Infosys. Interesting price action on 25-10-21 in store.
ICICI Bank will also react to its good results - does it break the trend of failing to hold the gap up the opening or it simply follows TCS. Wait and watch!
Nifty 18000 is a crucial line and all eyes would be on the same. Generally, the tendency is to break such levels when there is optimism and then bounce back.
I just read a headline stating 10-15% correction is in store if it breaks 17900.
So those of us who are interested in understanding the psychology of the crowds and the traders, in particular, are likely to have a nice week full of learnings.
Would we be able to earn while we learn? Well, that is the question whose answer is with each of the traders out there.
ITC appears to be losing its shine and is becoming a traders’ stock as it has got itself engaged in to wild swings.
What do you feel about this?
Here is the video link --
Thank you, and Happy Money Making!
Umesh
24-10-21
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 18230.70
H 18314.25
L 18034.25
C 18114.90
EOD - -63.20 points /-0.35%
India VIX = 17.55 / -2.71%
SGX Nifty 22-10-21 EOD = Flat
FII DII = -1668 Corres
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty yet again underperformed and made a lower high and a lower low.
Nifty is now too close to testing and or breaching 18000 line which is a big psycho level, especially on an EOD basis.
Nifty on daily charts is well placed for a bounce-back as long as the recent lows are held and it keeps trading above 18100.
On the weekly charts, Nifty is still bullish from a positional viewpoint. So no need to panic for the investors.
All that it is doing is giving an opportunity to enter some scrips.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 30
Top 5 Draggers contributed = 51
Net = -21
POSITIVES
Bank Nifty has been the single source of strength for Nifty for now.
It has been able to do so as HDFC Bank, Kotak Bank, ICICI Bank and SBIN have been doing well.
Ahead of its results, Reliance was a bit nervous and that is obvious.
NEGATIVES
Renewed negativity in Infosys is quite unnerving as it made TCS breach 3500 level as well. Now it is down 12.5% from its ATH hit in this very month!
ITC has undone all the good gains that it had made. Clearly, this scrip is losing its shine.
Tata Motors is having cruise control issues so it is better to be careful.
TRADING RANGE FOR 25 October 2021
Nifty made sustained efforts to keep falling and it came close to 18000 make or break line.
So 18000-18050 is now the new line of defense and 18200-250-300 and above are the lines of resistance
Bank Nifty supports at 39000-39200 and no idea about the resistance levels as it has ended above 40000 for the day..
INSIGHTS / OBSERVATIONS
Reliance did not go up as well which is unusual as it has happened in the case of TCS, HDFC Bank, and Infosys. Interesting price action on 25-10-21 in store.
ICICI Bank will also react to its good results - does it break the trend of failing to hold the gap up the opening or it simply follows TCS. Wait and watch!
Nifty 18000 is a crucial line and all eyes would be on the same. Generally, the tendency is to break such levels when there is optimism and then bounce back.
I just read a headline stating 10-15% correction is in store if it breaks 17900.
So those of us who are interested in understanding the psychology of the crowds and the traders, in particular, are likely to have a nice week full of learnings.
Would we be able to earn while we learn? Well, that is the question whose answer is with each of the traders out there.
ITC appears to be losing its shine and is becoming a traders’ stock as it has got itself engaged in to wild swings.
What do you feel about this?
Here is the video link --
Thank you, and Happy Money Making!
Umesh
24-10-21
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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