Weekly Analysis of Indices as on 7-1-22

9 янв. 2022 г.

DATA DRIVEN ANALYSIS OF NIFTY & BANK NIFTY FOR THE WEEK ENDING 7-1-22

This is a new weekly post/series where I will briefly capture the key highlights of the 2 leading indices. This post is supported by a video that takes you through the details of how I have arrived at the analysis. I encourage you to view the video as well since not everything can be captured in a document form.

I hope that this effort would help the readers and viewers to get a crisp idea about what happened in the markets over a period of one week.

Important - The indices have made good progress in the first week of 2022 even as the situation in terms of Covid cases is deteriorating by the day. Purely looking at the data, it is not looking bad at all, but the Covid related uncertainties is a big factor and that is why I have been cautious and will remain so for now. I prefer to remain with spare funds than letting them swing wildly once in the market.

BANK NIFTY

Since comparison with 1-1 data is not possible, I have used 3-1-22 which was the first trading day of the year as well as the week.

EOD on 3-1-22 = 36421

EOD on 7-1-22 = 37739 up by 1318 points or 3.61% from 3-1-22

The highest level in the week ending 7-1-22 = 38134 on 7-1-22

The lowest level in the week ending 7-1-22 = 35526 on 3-1-22

Difference Highest - Lowest = 2608 points or 7.34% from the lowest level

In the last week, Bank Nifty has made an upward move of 2258 points or 6.36% which is a strongly bullish sign.

NIFTY

Since comparison with 1-1 data is not possible, I have used 3-1-22 which was the first trading day of the year as well as the week.

EOD on 3-1-22 = 17625

EOD on 7-1-22 = 17812 up by 187 points or 1.06% from 3-1-22

The highest level in the week ending 7-1-22 = 17944 on 5-1-22

The lowest level in the week ending 7-1-22 = 17383 on 3-1-22

Difference Highest - Lowest = 561 points or 3.23% from the lowest level

In the last one week Nifty has made an up move of 458 points or 2.64% which indicates a continued momentum on the upside.

FII - DII DATA:

JAN 2022 [Till Date]

FIIs = +1081 Crores

DIIs = +3512 Crores

Net is = +4,592 Crores

KEY LEVELS FOR THE INDICES - on closing basis

Bank Nifty

To remain in bullish momentum 37200-37400

Crucial Support - 36800

Potential Change of Trend - 36600

Bank Nifty

To remain in bullish momentum 17750-825

Crucial Support - 17675

Potential Change of Trend - 17600

I have made some changes to this analysis and have made it more data driven by removing subjective conclusions. This would help those who prefer data driven techniques. Also, my daily market analysis covers all the key points [especially related to Friday analysis] that are not covered in this post.

Here is the video link:
youtu.be/IBXp4M15_Us

I hope this change is well received and would be looking forward to receiving your feedback.

Happy Trading/Investing!

Umesh
8-1-22
Not SEBI Regd.
Posted purely for Educational & Informational purposes only.