Bulls struggle, but manage to end Nifty just above 17000
NIFTY 50 EOD ANALYSIS 24-12-21
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 17149.50
H 17155.60
L 16909.60
C 17003.70
EOD -68.85 points / -0.40%
SGX Nifty 24-12-21 @ 1930 = +9
FII DII = + -758 Crores
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a gap-up of 70+ points, attempted to make a further up move but failed, and then, as usual, there was a sell-off. Nifty lost 200+ points from the day high and breached 17000 with ease.
In fact, at one stage, it appeared that the Nifty may well break 16900, but after some time spent around that level, it managed to recover 150+ points.
From its day high to day low, Bank Nifty moved a total of 744 points which is a big move when the previous 3 days had ended in the green.
In comparison to yesterday, Nifty has made a higher high but a lower low. And Bank Nifty has made a lower high and much lower low which is not a good sign.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 26
Top 5 Draggers contributed = 37
Net = -11
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 0
Top 3 Draggers contributed = 189
Net = -189
POSITIVES
Nifty managed to end above 17000.
Reliance and IT stocks helped Nifty curtailing incremental negativity.
NEGATIVES
Bank Nifty looks very weak and has breached 35000 decisively and has been rejecting higher levels consistently.
HDFC and Kotak Bank had turned positive yesterday but the two failed to hold on to the area and turned negative and were the lead draggers of the indices.
India Vix has gone up.
Today even DIIs have turned net sellers.
TRADING RANGE FOR 27 DEC 21
Nifty support = 16700-800
Nifty resistance = 17060-17100-150-200-260-300
Bank Nifty Support = 34000-200
Bank Nifty resistance = 35000-200-450-525-600
INSIGHTS / OBSERVATIONS
How time frames play a key role - At 1110h, Nifty closed above 20 MA on 5 Minute charts and Nifty reading was 16955. On the 15 minutes chart, Nifty closed above the 20 MA line at 1345h when Nifty reading was 16986. A gap of 2h15m and barely 30 points move but depending upon what type of a trader you are, you would have benefitted or lost to some extent.
It seems that the last 3 days positivity was something that the bulls could not sustain and the bears pulled their might to bring about a sell-off as soon as the market opened. Such was the pressure that the indices made significant moves on the downside with Nifty day low close to 16900 and Bank Nifty day low just below 34600!
On my Nifty 5 minute charts, I have drawn several support and resistance lines several days ago. These lines keep getting retested now and then. Most of the time, these get retested on the downside. Today was one such day and Nifty finally halted around the 4th support line. No surprise that India Vix has gone up yet again.
Our markets may find it hard to make directional moves on 27-12 as the US markets are observing a holiday on the eve of Christmas.
Usually, around 1300h, the market experiences sell-off but today, something unexpected happened and Nifty started a strong and steady recovery and managed to make a high just below the earlier day’s close. This was a refreshing change.
Covid cases and Omicron cases have shot up in Europe and US and the markets there are not so negative, but our markets are either discounting the 3rd wave impact in India or are under pressure only because of FII selling.
What do you feel about this?
Here is the link to the video:
Thank you, and Happy Money Making!
Umesh
24-12-21
NOTE --
This write-up is not a prediction mechanism for the movement of Indices in the Indian markets as the markets are unpredictable in nature. I may refer to many data points in the article but I do not base my view on any of these standalone. In fact, I prefer to react to the price moves than predict the price moves. I also do not review Open Interest. Whatever data points I am using, are all stated in the article. The article title, as well as its contents, can at best be stated as --- This Is How I Read Nifty. I hope I have been able to set the expectations right.
---
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 17149.50
H 17155.60
L 16909.60
C 17003.70
EOD -68.85 points / -0.40%
SGX Nifty 24-12-21 @ 1930 = +9
FII DII = + -758 Crores
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a gap-up of 70+ points, attempted to make a further up move but failed, and then, as usual, there was a sell-off. Nifty lost 200+ points from the day high and breached 17000 with ease.
In fact, at one stage, it appeared that the Nifty may well break 16900, but after some time spent around that level, it managed to recover 150+ points.
From its day high to day low, Bank Nifty moved a total of 744 points which is a big move when the previous 3 days had ended in the green.
In comparison to yesterday, Nifty has made a higher high but a lower low. And Bank Nifty has made a lower high and much lower low which is not a good sign.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 26
Top 5 Draggers contributed = 37
Net = -11
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 0
Top 3 Draggers contributed = 189
Net = -189
POSITIVES
Nifty managed to end above 17000.
Reliance and IT stocks helped Nifty curtailing incremental negativity.
NEGATIVES
Bank Nifty looks very weak and has breached 35000 decisively and has been rejecting higher levels consistently.
HDFC and Kotak Bank had turned positive yesterday but the two failed to hold on to the area and turned negative and were the lead draggers of the indices.
India Vix has gone up.
Today even DIIs have turned net sellers.
TRADING RANGE FOR 27 DEC 21
Nifty support = 16700-800
Nifty resistance = 17060-17100-150-200-260-300
Bank Nifty Support = 34000-200
Bank Nifty resistance = 35000-200-450-525-600
INSIGHTS / OBSERVATIONS
How time frames play a key role - At 1110h, Nifty closed above 20 MA on 5 Minute charts and Nifty reading was 16955. On the 15 minutes chart, Nifty closed above the 20 MA line at 1345h when Nifty reading was 16986. A gap of 2h15m and barely 30 points move but depending upon what type of a trader you are, you would have benefitted or lost to some extent.
It seems that the last 3 days positivity was something that the bulls could not sustain and the bears pulled their might to bring about a sell-off as soon as the market opened. Such was the pressure that the indices made significant moves on the downside with Nifty day low close to 16900 and Bank Nifty day low just below 34600!
On my Nifty 5 minute charts, I have drawn several support and resistance lines several days ago. These lines keep getting retested now and then. Most of the time, these get retested on the downside. Today was one such day and Nifty finally halted around the 4th support line. No surprise that India Vix has gone up yet again.
Our markets may find it hard to make directional moves on 27-12 as the US markets are observing a holiday on the eve of Christmas.
Usually, around 1300h, the market experiences sell-off but today, something unexpected happened and Nifty started a strong and steady recovery and managed to make a high just below the earlier day’s close. This was a refreshing change.
Covid cases and Omicron cases have shot up in Europe and US and the markets there are not so negative, but our markets are either discounting the 3rd wave impact in India or are under pressure only because of FII selling.
What do you feel about this?
Here is the link to the video:
Thank you, and Happy Money Making!
Umesh
24-12-21
NOTE --
This write-up is not a prediction mechanism for the movement of Indices in the Indian markets as the markets are unpredictable in nature. I may refer to many data points in the article but I do not base my view on any of these standalone. In fact, I prefer to react to the price moves than predict the price moves. I also do not review Open Interest. Whatever data points I am using, are all stated in the article. The article title, as well as its contents, can at best be stated as --- This Is How I Read Nifty. I hope I have been able to set the expectations right.
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