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NIFTY 50 EOD ANALYSIS 22-2-22
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 16847.95
H 17148.55
L 16843.80
C 17092.70
EOD -114.45 points / -0.67%
SGX Nifty 22-2-22 @ 1625h = +89
FII DII = Not yet available
CHART BASED CONCLUSIONS using 5 Minutes Chart
opened with a gap-down of 350+ points and then took support around the open area of 16840-850 and moved sideways for a while before testing 17000 levels.
However, soon after 1100h, it fell more than 100 points and was again threatening to retest the day low. However, a sudden buying interest around 1400h took it up by 225+ points to hit the day high.
It then moved sideways to end the day well below 17200 but managed to close above 17050.
In the process, Nifty has made lower highs and lower lows.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 21
Top 5 Draggers contributed = 69
Net = -48
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 39
Top 3 Draggers contributed = 286
Net = -247
POSITIVES
Kotak Mahindra Bank Ltd (NS:) was the least loser of the heavyweights and it helped the indices from falling further. As the day progressed, Infosys (NS:) also joined and became the leader in pulling Nifty up.
The manner in which the indices bounced back is a good sign indicating strong buying support below 16900 for Nifty and around 37000 for .
NEGATIVES
Steep rise in made all the difference for the day. In recent months, this is one rare session where it has spiked above 27.
TCS (NS:), HDFC Bank (NS:), Reliance (NS:), State Bank Of India (NS:), and Axis Bank (NS:) remained negative throughout the day putting pressure on the indices.
TRADING RANGE FOR 23 Feb 22 on a Closing basis
- Nifty Support – 16800-900
- Nifty Resistance – 17200-300-350-400-450-500
- Bank Nifty support – 37000-200
- Bank Nifty resistance – 37700-850-38000-38200
INSIGHTS / OBSERVATIONS
- The numerologists had a busy day as many were seen trying to relate today’s date with the market moves. Assuming they are correct, why do such moves occur only on the downside? Is fear dependent on the dates and the moon positioning?
- And from the heavyweights, Kotak Bank is the least negative as it has the tendency to go on a different footing than the markets. On such days, such traits help in somewhat neutralizing the damage.
- Though the fall in TCS appears more a technical upon clean breach of 20 DMA, it is a bit surprising as Infosys is not that severely impacted even though the US IT index is down significantly.
- And today, all the bulls should thank HDFC Bank [so till 1220h] for holding on to 1500+ levels as one shiver and there will be negativity all over.
- It is said that if the price keeps testing the same area over and over again, it is not a good sign. Now with that in mind, 16800-820-840 areas have been tested regularly by Nifty under one pretext or the other. It would be interesting to see where this week ends.
- The one line that is in green is the India VIX which is at 27+ [intraday basis] and this is causing Nifty to move with spreads of 5-15 at a time and for Bank Nifty 20-40 at a time. Not sure if a sound SL in the system would work on such days. And of course, such wide gap moves are on the downside and rarely seen on the upside.
- And this has caused the basis [the difference between the Spot & the Future] in Nifty to go up by 25 points where the Future is lower than the spot. Again, 2 schools of thoughts here – one says, this indicates bearish sentiment bottomed out and the other says – it is just the beginning.
- Around 1400h, the indices witnessed a very unusual round of positive attack possibly by the DIIs. The move was with ferocity and made all the difference. I was thinking whether the LIC IPO would get impacted by the ongoing turmoil in the markets and soon the DIIs heard my thoughts. It is more than likely that LIC itself maybe one such DII who turned the indices up.
What do you feel about this?
Here is the link to the video:
https://youtu.be/d_MZ73n84F0
The post is for educational & informational purposes only.
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