[ad_1]
NIFTY 50 EOD ANALYSIS 11-2-22
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 17451.00
H 17639.45
L 17303.00
C 17374.75
EOD -231.10 points / 1.31%
SGX Nifty 11-2-22 @ 1800h = -4
FII DII = Not yet available
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a 100+ points gap-down and then made an attempt to recover which failed miserably and fell another 125+ points.
Nifty thus retested the 17300 levels and registered a total fall of 302 points from the close of the previous session.
A lot of weakness was seen in the area between 17300-350 with increased volatility and frequent choppiness. Just before 1100h, Nifty retested the 17300 area and then found strong support and retested the resistance around the day high.
It then fell post the FTSE open and fell 70+ points. Nifty then tried to clear 17400 but was clearly unsuccessful and ended below 17400.
In the process, Nifty has made a lower low and a lower high.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 08
Top 5 Draggers contributed = 105
Net = -97
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 10
Top 3 Draggers contributed = 371
Net = -361
POSITIVES
Nifty managed to end the week above 17350 and Bank Nifty above 38500.
Reliance (NS:RELI) held on from being tempted to slide down along with the market and this helped to stabilize Nifty.
EVen HDFC Bank (NS:HDBK) though it ended in the red recovered well and helped the indices recover.
NEGATIVES
Infosys (NS:INFY), TCS (NS:TCS), HDFC (NS:HDFC), ICICI Bank (NS:ICBK), SBI (NS:SBI), and Kotak Mahindra Bank Ltd. (NS:KTKM) dragged the market throughout the day and never allowed it to recover.
Infosys, TCS and HDFC in particular slipped in the last hour as well making it hard for Nifty to sustain above 17400.
TRADING RANGE FOR 14 Feb 22
Nifty Support – 17000-200
Nifty Resistance – 17400-450-525-575-600
Bank Nifty Support – 37800-38000
Bank Nifty Resistance – 38800-39000-39200
INSIGHTS / OBSERVATIONS
- The last insight of the post shared on
10-2
had a reference to the price action that we may be witnessing today. I do not know why the indices keep reading my posts when I mention a potential fall/consolidation. The reason that would be attributed by the media would be – global cues. The reality is Nifty hit double resistances as of 10-2 EOD. - The price-action of many leading scrips – Infosys and HDFC in particular, reminds me of the Hindi term “Nukkad” [corner of comfort]. From wherever the price is these two scrips get attracted to their own corner of comfort around 1720 & 2420 respectively.
- Now it is clear that even a declining India VIX on an EOD basis is of little significance as the following day, it would have to dance to the tunes of the US Vix. Who said trading is easy and especially in the derivatives segment?
- In the short term, the only likely way for traders/investors to survive in the market is to be able to create hedging positions in SGX Nifty so that the US side of the Nifty impacts would be taken care of. In this market, Fear Of Missing Out or FOMO is not applicable as the prices would in any case come down giving yet another opportunity to those who missed it in the first place. I have experienced this during the week.
- Here is my tweet that gives an idea about the significance of Reliance in Nifty:
What do you feel about this?
Here is the link to the video:
https://youtu.be/SZFtxOM1kKI
The post is for educational & informational purposes only.
[ad_2]
Source link
