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NIFTY 50 EOD ANALYSIS 23-2-22
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 17194.50
H 17220.70
L 17027.85
C 17063.25
EOD -28.95 points / -0.17%
SGX Nifty 23-2-22 @ 1655h = +07
FII DII = -393 Crores
CHART BASED CONCLUSIONS using 5 Minutes Chart
opened with a gap-down of 100 points and then played right into the resistance around 17210-220 and from there fell 100 points to come closer to the previous close.
Fortunately, it found support around 17120 and from there, it made a steady recovery to test 17200 but failed to hold the higher levels and yet again drifted in a slow-paced manner.
This drift resulted in a breach of the AM session low around 17120 and in the last half an hour, Nifty fell 100 points to give up all the gains it had toiled hard during the day.
Despite the above, Nifty has made a higher low and a higher high.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 27
Top 5 Draggers contributed = 40
Net = -13
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 168
Top 3 Draggers contributed = 164
Net = +4
POSITIVES
Kotak Mahindra Bank Ltd (NS:) picked up from where it left yesterday and was the leader from the heavyweights which helped the indices from drifting further. It was up 3% on an intraday basis and tested 1900 levels as well.
State Bank Of India (NS:) and Infosys (NS:) played a good supporting role.
NEGATIVES
TCS (NS:) continues to be the punching bag of the FIIs along with ICICI Bank (NS:) which has not yet been forgiven for the ABG issue.
Reliance (NS:) has its customary weakness around 2400 area which hurts Nifty and prevents it from remaining positive.
HDFC (NS:) twins and ICICI Bank also ended in the negative.
TRADING RANGE FOR 24 Feb 22 which is also the Monthly Expiry Day [On a Closing basis]
Nifty Support – 16800-900
Nifty Resistance – 17200-300-350-400-450-500
support – 37000-200
Bank Nifty resistance – 37700-850-38000-38200
INSIGHTS / OBSERVATIONS
- In the opening hour, was in green and up 0.7% and yet Infosys came down 1% from the day high and so did TCS. Is this happening on account of sector rotation? FIIs pulling out funds from the IT giants to invest elsewhere?
- With falling 6% in the opening hour, the moves have become slow and the Options are behaving as if they are made of ice! This was up to 1100h, as thereafter they started losing value at a good pace even though the VIX had declined further.
- As the session progressed HDFC twins started their cranky behavior which made the indices very choppy. ICICI Bank and Axis Bank (NS:) also joined the party along with Reliance and ensured that the indices fell from their respective day highs.
- Even after the opened with a reasonable amount of green, our indices were moving in a range-bound manner with downward bias on account of the HDFC twins’ erratic moves. FII selling is gradually becoming clear when there is a sharp fall in the indices and then they recover.
- Many analysts have been downplaying the significance of the relentless selling made by the FIIs citing record inflows via the MF route. Such conclusions are only good for giving cold comfort as the fact is that the FII selling has been causing Nifty to fall close to 2,000 points from the high of 18604 to the lows of 16400.
- Usually, when FTSE is in green and our markets have been beaten down, the 1500h candle which is generally the DII buy candle lifts the indices. Today, it appeared that they were replaced by FIIs and it resulted in sharp selling in the last half an hour which ended the indices flat.
- Although the monthly expiry is tomorrow, the last half an hour move was similar to the expiry day move, and Nifty raced down as if it is keen on breaching 17000.
What do you feel about this?
Here is the link to the video:
https://youtu.be/KqI-GALWi0A
The post is for educational & informational purposes only.
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