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NIFTY 50 EOD ANALYSIS 28-2-22
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 16481.60
H 16815.90
L 16356.30
C 16793.90
EOD +135.50 points / +0.80%
SGX Nifty 28-2-22 @ 1840h = +92
FII DII = +194 Crores
CHART BASED CONCLUSIONS using 5 Minutes Chart
opened with a gap-down of 125+ and then fell another 125+ points.
It then made a sustained and very impressive rally where it defied the global cues and even crossed 16800 and finally ended just below that level.
It was quite volatile in between for 2-3 hours and it was able to hold on to 16600+ levels.
Interestingly, Nifty has made a lower low and a higher high.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 103
Top 5 Draggers contributed = 52
Net = +51
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 123
Top 3 Draggers contributed = 326
Net = -203
POSITIVES
Reliance (NS:), ICICI Bank (NS:), and Infosys (NS:) were the star performers and they exhibited a great deal of positivity amidst uncertainties experienced by the global markets.
It was good to see that finally TCS (NS:) also ended in the green along with State Bank Of India (NS:).
NEGATIVES
HDFC (NS:) twins disappointed and dragged the indices with their might.
Axis Bank (NS:) and Kotak Mahindra Bank Ltd. (NS:) also remained under pressure throughout the day and ended in the negative which resulted in ending in the red.
has gone up significantly even when Nifty has ended in the green.
Even on a day when Nifty has ended in the green, FIIs have maintained their selling pressure around 4,000 Crores.
TRADING RANGE FOR 2 Mar 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
- For starters, please read this tweet shared on 26-2:
- Now that you have read it, you know what markets eventually did. This is what I was suspecting may happen. This period is one of the most unfortunate & unkind to the traders/investors who may have created positions & then the fortunes turn the other way after showing a nice trailer of what may happen as the market reopens.
- Without doing anything, Nifty made a great journey from 16976 to 16481 down 500+ points from the dream opening for some to a low of 16356 [so far] a fall of 600+ points from what was projected. This is one really good experience for the minds to accept the fact that it is best to carry overnight unhedged positions.
- Bank Nifty opened the day just below the S1 level and also below the open of 25-2. This acted as a double resistance and then FIIs laughed their way to the banks.
- Purely from an edutainment point of view, it would be nice if the SGX Bank Nifty index is also introduced.
- The worst-hit at the open were the banks and they moved down SWIFTLY from their opening highs. Now, investors in banks have to absorb one more type of risk. The younger generations in the markets are being served with some great learning experiences of their lifetime.
- When Nifty hit 16700 and was up 50+ points, US Futures were down by 1%+. Clearly, Nifty was being taken for a joy ride by Reliance, Infosys, ICICI Bank, and TCS.
- I am not sure what fueled a further rally in Nifty despite the fact that was in the red by 1%+. Even as I am finalizing the article post-1800 h, SGX has gone up even further. When our markets solidly defy global indices, there is a potential risk involved as India VIX has also gone up.
What do you feel about this?
Here is the link to the video:
https://youtu.be/nRWg1eZypq0
The post is for educational & informational purposes only.
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