Hattrick of Redness by Indices before a long weekend
In this post, I will talk about the analysis of the day yesterday. The video graphically explains how the indices, as well as the major stocks, have performed during the day and are likely to perform the next day.
NEM –133.85 points / -0.75%
SGX 18-11-21 @ 1920h = -13 points
FII DII = Not yet available
CONCLUSIONS BASED ON GRAPHS using a 5-minute chart
Nifty opened flat despite weak global indices, then rallied slightly, but reality hit and relentless selling pressure kicked in a bit beyond noon when Nifty broke 17,700 and took support towards 17690.
The index then rose over 100 points, like in the red, but not that much, so Nifty also climbed to 17,800+, but the exhalation pressure then put it well below 17,800. and just above 17750 on an EOD basis.
The session was quite choppy with quick moves to either side with wider spreads – this may be due to the hat trick in the negative market bias and today was also the expiration.
On EOD as well as in the PM session, showed better resilience than Nifty, indicating a good change.
Nifty made a higher and a lower lower.
LIFT WEIGHTS AND NIFTY DRAGGERS
Top 5 Weightlifters Contributed = 21
Top 5 dredgers contributed = 56
Net = -35
HDFC Bank (NS :), Reliance (NS 🙂 and ICICI Bank (NS 🙂 finished in the green is a welcome change and may well help the indexes return to bullish momentum hopefully in the world tomorrow.
Bank Nifty is better placed than Nifty and has made a big effort to stay above P Close.
Nifty unable to close above 17800 is a big negative point. With that, Nifty is now over 800 points lower than his ATH and retest efforts would require more momentum than before.
Bank Nifty also broke its last support at 37800 and soared towards 37700 but stopped at 37745.
Nifty continues to make its highs and lows lower.
FII-DII are net sellers.
NEGOTIATION RANGE FROM 22 TO 26 November 2021
Clever support 17600-700
Nifty resistance 17,800 and all 50 points thereafter.
Smart Bank Support 37500-700
Banque Nifty Resistance 38000-38200-38500
OVERVIEWS / OBSERVATIONS
- The HDFC (NS 🙂 bank seems to have found support at 200 DMA and in its zone as its Open and Low were almost the same and it remained firm on a very volatile expiration day.
- Bank Nifty came to 37,800 4 times and found support immediately except once when it momentarily broke and bounced back. So it can now be good support as long as it holds on November 22 and the index closes above 38,000 on that day.
- HDFC Bank and Reliance appear to have consumed all the supplies as they were more or less firm during the day. A lot depends on the duo if the markets are to resume their upward journey.
- The option premium, especially in Nifty, was more or less aligned with the spot during the PM session. Usually the decay or adjustment occurs quite late, trapping option buyers.
How do you feel about it?
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. I can refer to many data points in the article, but I am not basing my perspective on any of these stand-alone elements. In fact, I prefer to react to price movements than to predict price movements. I’m not looking at Open Interest either. Whatever data points I use, they are all 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.