Bank Nifty under pressure, will it break down?
ANALYSIS NIFTY 50 EOD 15-12-21
In this article, I’m talking about yesterday’s analysis and today’s trading range. The video graphically explains how the indices as well as the main stocks performed during the day and their likely play today.
NEM +27 points / + 0.16%
16-12-21 @ 1840h = +14
FII DII = +65 Crores
GRAPH-BASED CONCLUSIONS Using a 5-Minute Chart
opened with a strong gap and tried to hold on to the higher ground, but as usual the selling pressure was so intense it dropped over 100 points in about an hour.
He then tried to straighten up around 17300 but couldn’t reach the level, then he fell again but this time he broke 17200.
It rallied again, but this time it hit a lower high and then it fell sharply again and also broke 17,190.
Finally, expiration shares lifted Nifty as Reliance (NS 🙂 also broke 2400 and Nifty finished just above the previous close.
In the process, Nifty hit a high but a low.
LIFT WEIGHTS AND NIFTY DRAGGERS
Top 5 Weightlifters Contributed = 53
The 5 best dredgers contributed = 23
Net = +30
LIFT WEIGHT AND DRAGGERS BANK NIFTY
Top 3 weightlifters contributed = 01
Top 3 dredgers contributed = 189
Net = -188
Reliance Industries Ltd (NS 🙂 finished above 2400 and Infosys (NS 🙂 also rose despite unfavorable market conditions.
ICICI Bank (NS 🙂 was under pressure perhaps from the announcement of the penalties and that’s what drove sentiment down.
Even during the day, ICICI Bank was very choppy – moving up and down in a narrow range.
HDFC (NS 🙂 continues to get hammered on every climb.
Kotak Bank reached 1890 and from there fell over 1% to complete at 1860. This also had a huge impact on indices.
The indices are now becoming vulnerable to a few leaders or laggards and that is not a good sign in my opinion.
TRADING RANGE FOR 17 Dec 21
Smart Support = Considering the continuing selling pressure, I’m lowering the supports to 17050-100.
If broken, 16750-850 could open for support.
Clever resistance = 17300-380-400-450-500.
Support = 36000-200-500
Bank Nifty Resistance = 36700-850-37000
OVERVIEWS / OBSERVATIONS
- The intense, hard pounding of key support levels with relative ease and doing too many times for a short time is not a good sign. It looks like Bank Nifty could collapse under such pressure.
- Reliance and Infosys got Nifty back and it looks like the bulls have clearly lost control over how to firmly enter the markets.
- Although strongly positive, our indices simply ignored the fact as if we were in a different league. Or there is something that I cannot figure out that is going on in the market.
- The Bank of England has raised interest rates and the FTSE is now up almost 1%. What was expected from the Fed was actuated by the British regulator and our indices caught cold?
- Yesterday I talked about how the markets could open up today. Here is the link to my tweet posted this morning:
Here is the video link –
This wording is not a mechanism for predicting the movement of indices in Indian markets, as the markets are unpredictable in nature. There are many data points I can refer to in the article, but I am not basing my perspective on any of these stand-alone elements. In fact, I would rather react to price movements than predict price movements. I’m not looking at Open Interest either. Whatever data points I use, all of them are listed in the article. The title of the article, as well as its content, can at best be declared as — This is how I read Nifty. I hope I have been able to meet expectations correctly.