Nifty gaps up, tanks & then rebounds in style
NIFTY 50 EOD ANALYSIS 08-11-21
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 18040.20
H 18087.80
L 17836.10
C 18068.55
EOD - +151.75 points / +0.85%
India VIX = 16.34 / +3.62%
SGX Nifty 08-11-21 @ 1845h = +23 points
FII DII = +1051 Crores
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a good gap up and then in the typical style sold off in 10 minutes and was down 200+ points.
It then struggled till about noon and thereafter, made a strong bounce back and closed the day below the day high.
Nifty has made a very strong hammer pattern candle on the daily charts and looks as if it may well break the 20 DMA.
Nifty was however let down by Bank Nifty as the latter was beaten down comprehensively on an intraday basis.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 94
Top 5 Draggers contributed = 38
Net = 56
POSITIVES
Nifty ended above 18050.
Nifty made a strong recovery from the lows around 17830+ and that was a strong recovery indicating good buying support for Nifty around the level.
HDFC, Kotak Bank, and Infosys played a pivotal role in placing Nifty above 18000+.
NEGATIVES
Bank Nifty was beaten down on account of IndusInd Bank, ICICI Bank, and Bandhan Bank turning negative. IndusInd in particular was down 10% which impacted the overall sentiment.
FIIs are still net sellers of 800+ Crores which means there is likely to be selling pressure tomorrow as well.
TRADING RANGE FOR 9-12 November 2021
Nifty Support 17600-17700
Nifty resistance 18100-150-200
Bank Nifty Support 38800-39000-200
Bank Nifty Resistance 39600-800-40000.
INSIGHTS / OBSERVATIONS
I am wondering how much of gains is FIIs banking as they keep selling relentlessly.
Clearly, there is something that is being done in a planned manner that is not coming out in the open and no one seems to be talking about the same.
Have FIIs become irrelevant?
The spreads in Bank Nifty, in particular, were very wide and the basis, the difference between the future and the spot was also fluctuating.
Even though Nifty has shot up, Vix has also gone up but this may be on account of heavy selling in Bank Nifty.
What do you feel about this?
Here is the video link --
Thank you, and Happy Money Making!
Umesh
08-11--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.
---
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 18040.20
H 18087.80
L 17836.10
C 18068.55
EOD - +151.75 points / +0.85%
India VIX = 16.34 / +3.62%
SGX Nifty 08-11-21 @ 1845h = +23 points
FII DII = +1051 Crores
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a good gap up and then in the typical style sold off in 10 minutes and was down 200+ points.
It then struggled till about noon and thereafter, made a strong bounce back and closed the day below the day high.
Nifty has made a very strong hammer pattern candle on the daily charts and looks as if it may well break the 20 DMA.
Nifty was however let down by Bank Nifty as the latter was beaten down comprehensively on an intraday basis.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 94
Top 5 Draggers contributed = 38
Net = 56
POSITIVES
Nifty ended above 18050.
Nifty made a strong recovery from the lows around 17830+ and that was a strong recovery indicating good buying support for Nifty around the level.
HDFC, Kotak Bank, and Infosys played a pivotal role in placing Nifty above 18000+.
NEGATIVES
Bank Nifty was beaten down on account of IndusInd Bank, ICICI Bank, and Bandhan Bank turning negative. IndusInd in particular was down 10% which impacted the overall sentiment.
FIIs are still net sellers of 800+ Crores which means there is likely to be selling pressure tomorrow as well.
TRADING RANGE FOR 9-12 November 2021
Nifty Support 17600-17700
Nifty resistance 18100-150-200
Bank Nifty Support 38800-39000-200
Bank Nifty Resistance 39600-800-40000.
INSIGHTS / OBSERVATIONS
I am wondering how much of gains is FIIs banking as they keep selling relentlessly.
Clearly, there is something that is being done in a planned manner that is not coming out in the open and no one seems to be talking about the same.
Have FIIs become irrelevant?
The spreads in Bank Nifty, in particular, were very wide and the basis, the difference between the future and the spot was also fluctuating.
Even though Nifty has shot up, Vix has also gone up but this may be on account of heavy selling in Bank Nifty.
What do you feel about this?
Here is the video link --
Thank you, and Happy Money Making!
Umesh
08-11--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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