NIFTY 50 EOD ANALYSIS 4-1-22
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 17681.40
H 17827.60
L 17593.55
C 17805.25
EOD +179.55 points / +1.02%
SGX Nifty 4-1-22 @ 1920h = -18
FII DII = + +1796 Crores
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a modest gap-up and it never looked back.
Like yesterday, Nifty opened with a mild gap-up, made an attempt to go up but failed and fell more than 100+ points in the first hour itself.
It managed to find support around 17590-600 and from there it rose 100+ points and then it retested the important support around 17675 .
It once again went up by 50+ points and then again fell in to the zone and then finally in the last 2 hours managed to climb 125+ points and close above 17800.
Both the indices have made higher highs and higher lows which is a good sign.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 97
Top 5 Draggers contributed = 12
Net = +84
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 291
Top 3 Draggers contributed = 12
Net = +279
POSITIVES
Bank Nifty is now well above 200 DMA.
Nifty is now well above 50 DMA.
Reliance, SBIN, ICICI Bank, HDFC, TCS, and Kotak Bank have performed well.
Nifty closed above 17800.
FIIs have bought in excess of 1,200 Crores.
NEGATIVES
Infosys failed to close above 1900 - other than this I do not want to write anything for the sake of writing.
TRADING RANGE FOR 04 JAN 22
Nifty support = 17400-500
Nifty resistance = 17850-900
Bank Nifty Support = 35800-36000
Bank Nifty resistance = 37000-37200-400
INSIGHTS / OBSERVATIONS
The gap between Nifty open price for 3-1 and today is almost 300 points on the up side. This explains the underlying bullishness that the index has found in the last 2 sessions. And for Bank Nifty, the comparative positive change is almost 1,000 points. These are the numbers why the indices are up. Let us not find reasons, just enjoy the ride.
Like yesterday, today as well the top 3 scrips of Bank Nifty contributed 291 points of the total change of 418 points between close of 3-1 and today’s close. So much for being with the trend - right scrip at the right time.
India Vix has declined but the indices witnessed volatile movements until the PM session when FTSE would have guided them to higher levels. Vix is still above 16 so we have to be on the guard.
Bank Nifty OHLC was above 36000 which is a good sign. The key is for it to hold on to the 36000+ line and end the week above 37000.
Is this the rally in anticipation of a good budget that may get sold into if the Union Budget is off even by 1 mm?
What do you feel about this?
Here is the link to the video:
youtu.be/eshsGIhziNM
Thank you, and Happy Money Making!
Umesh
4-1-22
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 17681.40
H 17827.60
L 17593.55
C 17805.25
EOD +179.55 points / +1.02%
SGX Nifty 4-1-22 @ 1920h = -18
FII DII = + +1796 Crores
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a modest gap-up and it never looked back.
Like yesterday, Nifty opened with a mild gap-up, made an attempt to go up but failed and fell more than 100+ points in the first hour itself.
It managed to find support around 17590-600 and from there it rose 100+ points and then it retested the important support around 17675 .
It once again went up by 50+ points and then again fell in to the zone and then finally in the last 2 hours managed to climb 125+ points and close above 17800.
Both the indices have made higher highs and higher lows which is a good sign.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 97
Top 5 Draggers contributed = 12
Net = +84
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 291
Top 3 Draggers contributed = 12
Net = +279
POSITIVES
Bank Nifty is now well above 200 DMA.
Nifty is now well above 50 DMA.
Reliance, SBIN, ICICI Bank, HDFC, TCS, and Kotak Bank have performed well.
Nifty closed above 17800.
FIIs have bought in excess of 1,200 Crores.
NEGATIVES
Infosys failed to close above 1900 - other than this I do not want to write anything for the sake of writing.
TRADING RANGE FOR 04 JAN 22
Nifty support = 17400-500
Nifty resistance = 17850-900
Bank Nifty Support = 35800-36000
Bank Nifty resistance = 37000-37200-400
INSIGHTS / OBSERVATIONS
The gap between Nifty open price for 3-1 and today is almost 300 points on the up side. This explains the underlying bullishness that the index has found in the last 2 sessions. And for Bank Nifty, the comparative positive change is almost 1,000 points. These are the numbers why the indices are up. Let us not find reasons, just enjoy the ride.
Like yesterday, today as well the top 3 scrips of Bank Nifty contributed 291 points of the total change of 418 points between close of 3-1 and today’s close. So much for being with the trend - right scrip at the right time.
India Vix has declined but the indices witnessed volatile movements until the PM session when FTSE would have guided them to higher levels. Vix is still above 16 so we have to be on the guard.
Bank Nifty OHLC was above 36000 which is a good sign. The key is for it to hold on to the 36000+ line and end the week above 37000.
Is this the rally in anticipation of a good budget that may get sold into if the Union Budget is off even by 1 mm?
What do you feel about this?
Here is the link to the video:
youtu.be/eshsGIhziNM
Thank you, and Happy Money Making!
Umesh
4-1-22
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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