[ad_1]
NIFTY 50 EOD ANALYSIS 25-2-22
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 16515.05
H 16748.80
L 17478.30
C 16658.40
EOD +410.45 points / +2.53%
SGX Nifty 25-2-22 @ 1650h = -52
FII DII = Not yet available
CHART BASED CONCLUSIONS using 5 Minutes Chart
opened with a gap-up of 250+ points and immediately made a dash below 17500 to register the day low.
It then made a sustained relief rally well past 16700 and it hit resistance just below 16750 around 1100h.
Thereafter it remained in a narrow range of 125+ points and faced resistance at the intraday levels of 17680-685.
In the process, it has made a higher low and a higher high which is a welcome change.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 145
Top 5 Draggers contributed = 02
Net = +143
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 720
Top 3 Draggers contributed = 00
Net = +720
POSITIVES
The indices ended the losing streak by way of a relief rally that has covered almost half the points lost in yesterday’s session.
All Nifty heavyweights ended in the green.
No negative contribution from constituents.
tanked significantly as compared to yesterday.
NEGATIVES
For how long this relief rally will last is to be seen. We have a holiday next week (1 Mar) so the close of 2-3-22 would be interesting to note from a trend continuation point of view.
TRADING RANGE FOR 28 Feb 22
In view of the prevailing situation, I am not attempting to draw any lines of support and resistance. We may have to wait for a few days before India Vix cools down and when the situation on the global indices front also improves.
INSIGHTS / OBSERVATIONS
- It is interesting to learn as well as experience that between yesterday’s evening snack and today’s breakfast our market participants thought that they seem to have overreacted by selling off in a panic and so they decided to have a gap-up opening that sustained remarkably well.
- It is customary to say that “Amateurs open the market, and professionals close the same.” Keeping yesterday’s close and today’s open, I doubt if the statement has any merits.
- Like yesterday there was no point in looking at the stock charts and prices, today also it may not really serve the purpose as many of them may be either hitting the resistances which were acting as support prior to 24-2 or some of them may still be hanging in the air of course after gaining some height.
- And today, the global markets are quite positive even when the US futures are trading in the negative [of course far less negative than what they were yesterday]. I am not sure what positivity the Asian markets & futures have seen than the US futures could not. In the AM session, US futures were down 0.70% and we were up 2%+. Why this variation today?
- Though India VIX has cracked significantly, volatility as I see is greater than yesterday when the trend was only towards the south. Today, there are a lot of ups and downs that have been happening. Is this on account of fear or simply traders wanting to bank quick gains as they may not be sure which way the markets may end today?
- That it feels really good to see Nifty Bank moving up a total of 1400+ points and Nifty moving up 500+ points from yesterday’s close on post-event day is a good sight. Like it happens in the case of the Union Budgets, markets react on the day following the budget day, it appears to have happened here as well in case of the Russian venture into Ukraine.
- It seems that the ABG Shipyard-related negativity in ICICI Bank (NS:) has been overcome thanks to the turn of global events yesterday as today, it was leading from the front in terms of % increase. Or the target for ICICI Bank’s short-covering was around 700 areas. Whatever it may be, it is a good thing in the interest of all.
- In the PM session, it appeared that the market participants could not decide which way the market had to end. There was intense volatility and the moves were with wild swings. The intraday support and resistance lines have been working like a charm and making things all the more difficult.
- There was a noticeable change in volatility between Bank Nifty & Nifty Put premiums. In the case of the Nifty Put, the moves were range bound and when the spot moved down, the increase in prices was slower than the decrease in prices. Also, the Average Trade Price or the Tick Average remained more or less the same for a long time with variations only in decimals
What do you feel about this?
Here is the link to the video:
https://youtu.be/jAculnFWI68
The post is for educational & informational purposes only.
[ad_2]
Source link
