FIIs show their might as NIFTY surges past 17100 with ease
NIFTY 50 EOD ANALYSIS -31-08-21
IN SUMMARY
O / H / L / C
16947.5 / 17153.5 / 16915.85 / 17132.2
H-L = 238 points
VIX 14.52 / +9.01%
FII DII: +1909 Crores
Likely open: Positive but profit booking may kick in if Global cues do not support.
CHART BASED CONCLUSIONS
And the surge continued today as well and NIFTY finally sailed past 17000 with relative ease and ended comfortably above 17100.
It appeared that it may retest levels below 16900, but then it quickly recovered and then never looked back except for the lunch session quick fall which was bought in ti by the bears.
NIFTY is likely to set its own course as it builds its bases in the newer zones.
The daily charts indicate a strong bullish candle.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
BAJAJ FINANCE 38
TCS 16
BAJAJ FINSERV 16
HDFC 14
BHARTI AIRTEL 12
TOTAL 96
The Draggers
RELIANCE 07
NESTLE 04
TATAMOTORS 02
INDUSIND 01
BPCL 01
TOTAL 15
Lifter - Draggers = +81
The above indicates that a larger base of scrips in the NIFTY family helped it close above 17100.
POSITIVES
NIFTY crossed 17000 and closed above 17100 with ease.
BANK NIFTY finally emerged out of the resistances and soared which helped NIFTY.
Broader market participation resulted in NIFTY scaling higher levels with relative ease.
FIIs are back with a bang in the buying business and clearly, this had a positive impact on NIFTY.
Top 5 NIFTY heavyweights ended the month at their respective ATH which is a great positive.
NEGATIVES
BANK NIFTY kept underperforming and had a very narrow range for the day.
VIX is up 9% as shorters would have been forced to run cover.
RELIANCE as usual chose not to participate in the rally and this alone has the potential to be a spoilsport for NIFTY.
DIIs have sold heavily indicating that from their viewpoint, the short-term top is nearing or has been reached.
TRADING RANGE FOR 01-09-21
At best 17000 base is what I can think of for now. We will need to see how the index moves during the week before deciding on the levels.
BANK NIFTY support base stays at 35400-500 and resistance at 35800-36000-36200.
INSIGHT / OBSERVATIONS
Top 5 heavyweights of NIFTY recorded ATH close on monthly candles.
Like RELIANCE, KOTAK BANK also has the tendency to play its own game. Except that today HDFC BANK also joined it and saved BANK NIFTY from slipping from the lower levels.
BANK NIFTY has formed a Doji candle on the daily chart with good volumes. It is a sign of caution or a positive move ahead. We will need to wait and watch. As long as HDFC BANK stays positive, it will handle BANK NIFTY on the upside.
What do you feel?
Thank you, and Happy Money Making!
Umesh
31-8-21
P.S. If you choose to comment on the above, please do so with your analytical view rather than merely passing a comment. Your presentation of the view held by you would help other readers as well.
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 SUMMARY
O / H / L / C
16947.5 / 17153.5 / 16915.85 / 17132.2
H-L = 238 points
VIX 14.52 / +9.01%
FII DII: +1909 Crores
Likely open: Positive but profit booking may kick in if Global cues do not support.
CHART BASED CONCLUSIONS
And the surge continued today as well and NIFTY finally sailed past 17000 with relative ease and ended comfortably above 17100.
It appeared that it may retest levels below 16900, but then it quickly recovered and then never looked back except for the lunch session quick fall which was bought in ti by the bears.
NIFTY is likely to set its own course as it builds its bases in the newer zones.
The daily charts indicate a strong bullish candle.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
BAJAJ FINANCE 38
TCS 16
BAJAJ FINSERV 16
HDFC 14
BHARTI AIRTEL 12
TOTAL 96
The Draggers
RELIANCE 07
NESTLE 04
TATAMOTORS 02
INDUSIND 01
BPCL 01
TOTAL 15
Lifter - Draggers = +81
The above indicates that a larger base of scrips in the NIFTY family helped it close above 17100.
POSITIVES
NIFTY crossed 17000 and closed above 17100 with ease.
BANK NIFTY finally emerged out of the resistances and soared which helped NIFTY.
Broader market participation resulted in NIFTY scaling higher levels with relative ease.
FIIs are back with a bang in the buying business and clearly, this had a positive impact on NIFTY.
Top 5 NIFTY heavyweights ended the month at their respective ATH which is a great positive.
NEGATIVES
BANK NIFTY kept underperforming and had a very narrow range for the day.
VIX is up 9% as shorters would have been forced to run cover.
RELIANCE as usual chose not to participate in the rally and this alone has the potential to be a spoilsport for NIFTY.
DIIs have sold heavily indicating that from their viewpoint, the short-term top is nearing or has been reached.
TRADING RANGE FOR 01-09-21
At best 17000 base is what I can think of for now. We will need to see how the index moves during the week before deciding on the levels.
BANK NIFTY support base stays at 35400-500 and resistance at 35800-36000-36200.
INSIGHT / OBSERVATIONS
Top 5 heavyweights of NIFTY recorded ATH close on monthly candles.
Like RELIANCE, KOTAK BANK also has the tendency to play its own game. Except that today HDFC BANK also joined it and saved BANK NIFTY from slipping from the lower levels.
BANK NIFTY has formed a Doji candle on the daily chart with good volumes. It is a sign of caution or a positive move ahead. We will need to wait and watch. As long as HDFC BANK stays positive, it will handle BANK NIFTY on the upside.
What do you feel?
Thank you, and Happy Money Making!
Umesh
31-8-21
P.S. If you choose to comment on the above, please do so with your analytical view rather than merely passing a comment. Your presentation of the view held by you would help other readers as well.
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.
