NIFTY 50 EOD ANALYSIS 10-11-21
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.
EOD – -27.05 points / -0.15%
= 16.34 / +1.94%
SGX Nifty 10-11-21 @ 1920h = -28 points
FII DII = -+297 Crores
CHART BASED CONCLUSIONS using 5 Minutes Chart
opened 75+ points gap-down and then sold off further to test the nerves of the bulls as it fell further to 17915. After being nervous around the level, it consolidated, and then as the European open came nearer, it started regaining the lost ground.
However, its efforts were punctured by as it remained extremely weak and under pressure which negated any chance of Nifty at least trying to retest the previous close.
Nifty in the process has made a lower high and a lower low.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 52
Top 5 Draggers contributed = 48
Net = 4
Although Reliance (NS:) also was hit in the morning, it steadily recovered and then lead Nifty to end above 18000.
HDFC (NS:) made a smart recovery after falling at the open and it more or less directed the moves in Nifty as can be viewed from the charts.
ITC (NS:) and Axis Bank (NS:) were the other leading scrips that ended in the green.
Bank Nifty was comfortable below 39000 and most of its members were in the crying mood today. Even the usual counter-trend specialist scrip – Kotak Mahindra Bank Ltd. (NS:) was in the red.
Maruti (NS:), Infosys (NS:), and TCS (NS:) also ended in the red.
Bank Nifty is finding it hard to get in to the positive state as all its heavyweights have been struggling.
TRADING RANGE FOR 11-12 November 2021
Nifty Support 17800-17900
Nifty resistance 18100-150-200
Bank Nifty Support 38800-39000-200
Bank Nifty Resistance 39600-800-40000.
INSIGHTS / OBSERVATIONS
Global cues are considered by Nifty to open or start the day, but when it comes to the closing time, despite positive which is trading around its ATH, Nifty ended in the red. I am not sure who is ensuring such a close?
I tweeted in the AM session before noon re market movements as given in this linked tweet:
I know that we live in a Global village (they say the world is a global village), but does it mean that we have to be always dependent on FTSE to open & NYSE to close to decide which way our stockmarkets trade So much for being an Armanirbhar Bharat!
The Nifty and Bank Nifty charts look quite different today and that is what explains the closing price levels. In my view, it was Reliance that made all the difference. However, Nifty and HDFC charts are almost identical which is quite a coincidence.
HDFC Bank (NS:) is behaving like a chronic ailment and I am glad that I exited this long ago.
What do you feel about this?
Here is the video link —
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.