Indices recover smartly, can they close above 18000 & 40000?
NIFTY 50 EOD ANALYSIS 01-11-21
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 17783.15
H 17954.10
L 17697.10
C 17929.65
EOD - +257 points / +1.46%
India VIX = 17.24 / -0.97%
SGX Nifty 01-11-21 @ 1850h = -28 points
FII DII = Not yet updated. It is likely to be positive.
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a good gap up and immediately shot up to 17815+ and then fell 100+ points and breached 17700 for a while and then bounced back to retest 17800.
It again sold off to retest 17700 and then steadily climbed up and never looked back. It was however quite choppy around HDFC results and was very hesitant to cross 17900 and finally managed to end above the line.
Nifty has thus made higher highs and higher lows.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 92
Top 5 Draggers contributed = 16
Net = 76
POSITIVES
Nifty closed above 17900.
Good recovery by SBIN, TCS, Infosys, and Kotak Bank helped Nifty keep upward bias.
Bank Nifty also bounced back after the initial hesitation. This helped Nifty move up firmly.
The top few heavyweights of Nifty ended in the positive and some of them in good green which is a good sign.
India Vix fell further.
NEGATIVES
Nifty is likely to face a good amount of resistance around and above 17950. Any weakness in any of the heavyweights could dampen the momentum.
Similarly, Bank Nifty is likely to face the 40K hurdle.
TRADING RANGE FOR 02 November 2021
Nifty Support 17600-17700
Nifty resistance 17950-18000-18100
Bank Nifty Support 38800-39000
Bank Nifty resistance 39800-40000-40200
INSIGHTS / OBSERVATIONS
Here is the link to my tweet re FII DII and its impact on Nifty movements:
Bank Nifty generally leads Nifty by a multiple of 3 if everything is ideal. So a 258 point move in Nifty should have resulted in 775 points move in Bank Nifty. So I see a greater potential for Bank Nifty in the next 2 sessions.
What do you feel about this?
Here is the video link --
Thank you, and Happy Money Making!
Umesh
01-11--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 17783.15
H 17954.10
L 17697.10
C 17929.65
EOD - +257 points / +1.46%
India VIX = 17.24 / -0.97%
SGX Nifty 01-11-21 @ 1850h = -28 points
FII DII = Not yet updated. It is likely to be positive.
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a good gap up and immediately shot up to 17815+ and then fell 100+ points and breached 17700 for a while and then bounced back to retest 17800.
It again sold off to retest 17700 and then steadily climbed up and never looked back. It was however quite choppy around HDFC results and was very hesitant to cross 17900 and finally managed to end above the line.
Nifty has thus made higher highs and higher lows.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 92
Top 5 Draggers contributed = 16
Net = 76
POSITIVES
Nifty closed above 17900.
Good recovery by SBIN, TCS, Infosys, and Kotak Bank helped Nifty keep upward bias.
Bank Nifty also bounced back after the initial hesitation. This helped Nifty move up firmly.
The top few heavyweights of Nifty ended in the positive and some of them in good green which is a good sign.
India Vix fell further.
NEGATIVES
Nifty is likely to face a good amount of resistance around and above 17950. Any weakness in any of the heavyweights could dampen the momentum.
Similarly, Bank Nifty is likely to face the 40K hurdle.
TRADING RANGE FOR 02 November 2021
Nifty Support 17600-17700
Nifty resistance 17950-18000-18100
Bank Nifty Support 38800-39000
Bank Nifty resistance 39800-40000-40200
INSIGHTS / OBSERVATIONS
Here is the link to my tweet re FII DII and its impact on Nifty movements:
Bank Nifty generally leads Nifty by a multiple of 3 if everything is ideal. So a 258 point move in Nifty should have resulted in 775 points move in Bank Nifty. So I see a greater potential for Bank Nifty in the next 2 sessions.
What do you feel about this?
Here is the video link --
Thank you, and Happy Money Making!
Umesh
01-11--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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