NIFTY 50 EOD ANALYSIS -25-08-21
IN SUMMARY
O / H / L / C
16654 / 16712.45 / 16617.5 / 16634.65
H-L = 95 points
VIX 13.5 / +2.35%
FII DII: + -1,222 Crores
Likely open: Flat to positive with resistance at 16650-700.
CHART BASED CONCLUSIONS
Yet another gap-up opening that did not last for more than 2 hours.
Nifty made a new ATH but was sold into. This is what has been happening.
Yet,
Nifty made a higher and a higher low and today’s low was above 16600 which is a quite a shift from below 16500 levels.
Nifty ended flat, up by 10 points.
Despite hitting a new ATH, Nifty ended the day with a hanging man candle or inverted hammer indicating selling pressure at higher levels.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
RELIANCE 29
INFOSYS 23
ADANI PORTS 22
TCS 21
HDFC LIFE 14
TOTAL 109
The Draggers
BAJAJ FINSERV 30
TITAN 17
ICICI BANK 10
BAJAJ FINANCE 9
JSW STEEL 08
TOTAL 74
Lifter - Draggers = +35
Despite a good +35 points positive on leaders to draggers basis, Nifty could muster a positive of only 10 points. This indicates the selling pressure intensity.
POSITIVES
NIFTY made yet another ATH Close and it also managed to register another ATH above 16700.
RELIANCE ended the day above 2200.
HDFC twins managed to remain more or less stable despite increased volatility.
INFOSYS and TCS bounced back up after yesterday’s negative performance.
NEGATIVES
16700 is a tough hurdle to cross this expiry as Nifty is unable to hold on to the level for long.
Ahead of expiry both FIIs and DIIs have turned net sellers.
BANK NIFTY fell almost 400 points after hitting 35910 which indicates that 36000 is a tough ask for the index to clear.
TRADING RANGE FOR 25-8-21
The Nifty baseline moves up to 16450-500. The resistances are now from 16650 onwards.
BANK NIFTY support base also slides to 35000-35200 and resistance at 35800-36000-36200.
INSIGHT / OBSERVATIONS
TATAMOTORS bounced back from 200 DMA in a good manner though it got sold in to at higher levels.
This may have been caused by MARUTI which continues to be under pressure and every rise is getting sold into. Today it tested 6700 levels. The outlook is not great was the commentary by the leadership so this may have caused the prices to slide.
What do you feel?
Thank you, and Happy Money Making!
Umesh
25-8-21
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
16654 / 16712.45 / 16617.5 / 16634.65
H-L = 95 points
VIX 13.5 / +2.35%
FII DII: + -1,222 Crores
Likely open: Flat to positive with resistance at 16650-700.
CHART BASED CONCLUSIONS
Yet another gap-up opening that did not last for more than 2 hours.
Nifty made a new ATH but was sold into. This is what has been happening.
Yet,
Nifty made a higher and a higher low and today’s low was above 16600 which is a quite a shift from below 16500 levels.
Nifty ended flat, up by 10 points.
Despite hitting a new ATH, Nifty ended the day with a hanging man candle or inverted hammer indicating selling pressure at higher levels.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
RELIANCE 29
INFOSYS 23
ADANI PORTS 22
TCS 21
HDFC LIFE 14
TOTAL 109
The Draggers
BAJAJ FINSERV 30
TITAN 17
ICICI BANK 10
BAJAJ FINANCE 9
JSW STEEL 08
TOTAL 74
Lifter - Draggers = +35
Despite a good +35 points positive on leaders to draggers basis, Nifty could muster a positive of only 10 points. This indicates the selling pressure intensity.
POSITIVES
NIFTY made yet another ATH Close and it also managed to register another ATH above 16700.
RELIANCE ended the day above 2200.
HDFC twins managed to remain more or less stable despite increased volatility.
INFOSYS and TCS bounced back up after yesterday’s negative performance.
NEGATIVES
16700 is a tough hurdle to cross this expiry as Nifty is unable to hold on to the level for long.
Ahead of expiry both FIIs and DIIs have turned net sellers.
BANK NIFTY fell almost 400 points after hitting 35910 which indicates that 36000 is a tough ask for the index to clear.
TRADING RANGE FOR 25-8-21
The Nifty baseline moves up to 16450-500. The resistances are now from 16650 onwards.
BANK NIFTY support base also slides to 35000-35200 and resistance at 35800-36000-36200.
INSIGHT / OBSERVATIONS
TATAMOTORS bounced back from 200 DMA in a good manner though it got sold in to at higher levels.
This may have been caused by MARUTI which continues to be under pressure and every rise is getting sold into. Today it tested 6700 levels. The outlook is not great was the commentary by the leadership so this may have caused the prices to slide.
What do you feel?
Thank you, and Happy Money Making!
Umesh
25-8-21
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.
