It was Reliance Vs the Rest as Indices Played Theatrics


NIFTY 50 EOD ANALYSIS 2-3-22

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 16593.10

H 16678.50

L 16478.65

C 16605.95

EOD -187.95 points / -1.12%

SGX 2-3-22 @ 1810h = +07

FII DII = Not yet available

CHART BASED CONCLUSIONS using 5 Minutes Chart

opened with a gap-down of 200 points and then dashed towards 16550 and from there made a quick recovery of 100+ points.

However, it then made a steady sell-off and fell 200 points to register low for the day by 1300h and then rose about 100 points only to fall again towards the day low.

And in the final hour, it made a good recovery to end just above 16600.

In the process, Nifty has made a higher low, but a lower high.

NIFTY WEIGHT LIFTERS & DRAGGERS

Top 5 Lifters contributed = 90

Top 5 Draggers contributed = 175

Net = -85

BANK NIFTY WEIGHT LIFTERS & DRAGGERS

Top 3 Lifters contributed = 39

Top 3 Draggers contributed = 733

Net = -694

POSITIVES

Today’s rescue operations were once again led by Reliance (NS:) and almost in a single-handed manner, it made sure that Nifty does not end below 17500.

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It was later joined by Axis Bank (NS:).

NEGATIVES

It was a disappointing performance by all the index heavyweights except Reliance. HDFC (NS:) twins in particular with the support of ICICI Bank (NS:) and Kotak Mahindra Bank Ltd. (NS:) broke the backbone of the indices as for the most part of the day, the market was limping.

shot up above 30.50 intraday and ended above 29.50 which is a significant jump.

TRADING RANGE FOR 3 Mar 22 -Weekly Expiry Day

Nifty Support 16300-400

Nifty Resistance 16700-800-900

Support 34200-500

Bank Nifty Resistance 35500-800-36000-200

INSIGHTS / OBSERVATIONS

  • When I finished writing my analysis for 28-2, SGX Nifty was trading at +100 to the close of 28-2. And after 24h, when I checked, it was trading at -100! And I thought that SGX Nifty should be also known as a “mood swinger” especially when our markets are off & the global markets are functioning.
  • After seeing the close of HDFC Life on 28-2, I could not stop myself from writing this tweet:

    And today my tweet was taken as a motivational tool & the stock price spiked.

  • Even though the numbers do not speak so, what I see is that some of the leading stocks like – TCS (NS:) & Infosys (NS:) had broken or tested their 200 DMA only in Mar 2020 and then now. Are we likely to witness a repeat of the post-Mar 2020 dream run? 2.5-3X jump from here?
  • And today it was the turn of the banks as well as HDFC to defy the positive global cues. Reliance was the savior for Nifty as it balanced the index and ensured that Nifty does not end below 17500. It is unusual to see a 50+ point fall in HDFC Bank (NS:) and it threw the indices in disarray.
  • After seeing today’s price action, I cannot stop thinking about what NSE stands for. Is it NSE as we know or the National School of Entertainment? Huge Sell-0ff, mild recovery, sell-off & then sharp recovery. Indices seem to have become the theater of the absurd!
  • And once again, hardly any merit in seeing the stock-specific price action as it is not known which way it may end tomorrow after opening gap-up or gap-down.

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What do you feel about this?

Here is the link to the video:
https://youtu.be/jwM0Z3LXn-8

The post is for educational & informational purposes only.



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