Bank Nifty under pressure, will it breakdown?
NIFTY 50 EOD ANALYSIS 15-12-21
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 17373.00
H 17379.35
L 17184.95
C 17248.40
EOD +27 points / +0.16%
SGX Nifty 16-12-21 @ 1840h = +14
FII DII = +65 Crores
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a strong gap-up and made attempts to hold on to the higher terrain, but as usual, the selling pressure was so intense that it fell more than 100 points in a matter of an hour or so.
It then made an attempt to rally towards 17300 but could not hit the level and then again it fell but this time it broke 17200.
It rallied once again but this time made a lower high and then again fell sharply and broke 17190 as well.
Finally, the expiry actions lifted Nifty as Reliance also crossed 2400 and Nifty ended just above the previous close.
In the process, Nifty has made a higher high but a lower low.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 53
Top 5 Draggers contributed = 23
Net = +30
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 01
Top 3 Draggers contributed = 189
Net = -188
POSITIVES
Reliance ended above 2400 and Infosys also moved up despite the adverse market conditions.
NEGATIVES
ICICI Bank was under pressure possibly on account of the penalty news and that is what dragged the sentiment on the downside.
Even during the day, ICICI Bank was very choppy - moving up and down within a narrow range.
HDFC continues to be hammered with every rise.
Kotak Bank hit 1890 and from there fell more than 1% to end at 1860. This also impacted the indices a lot.
The indices are now becoming vulnerable to a couple of leaders or laggards and this is not a good sign in my opinion.
TRADING RANGE FOR 17 Dec 21
Nifty Support = In view of the continued selling pressure, I move down the supports to 17050-100.
Should this break, 16750-850 may open up as a support.
Nifty resistance = 17300-380-400-450-500.
Bank Nifty Support = 36000-200-500
Bank Nifty resistance = 36700-850-37000
INSIGHTS / OBSERVATIONS
The Intense and hard hammering of key support levels with relative ease and that too many times during a short period of time is not a good sign. It appears that Bank Nifty may crumble under such pressure.
Reliance and Infosys salvaged Nifty and it appears that the bulls have clearly lost the grip on how to firmly grip the markets.
Though FTSE was strongly positive our indices just ignored the fact as if we are in a different league. Or there's something that I am not able to understand that is happening in the market.
The Bank of England has hiked the interest rates and FTSE is now up almost 1%. What was expected from the Fed has been actioned by the UK regulator and our indices caught cold.
Yesterday, I had mentioned how the markets could open today. Here is the link to my tweet posted in the morning:
What do you feel about this?
Here is the video link –
Thank you, and Happy Money Making!
Umesh
16-12-21
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 17373.00
H 17379.35
L 17184.95
C 17248.40
EOD +27 points / +0.16%
SGX Nifty 16-12-21 @ 1840h = +14
FII DII = +65 Crores
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a strong gap-up and made attempts to hold on to the higher terrain, but as usual, the selling pressure was so intense that it fell more than 100 points in a matter of an hour or so.
It then made an attempt to rally towards 17300 but could not hit the level and then again it fell but this time it broke 17200.
It rallied once again but this time made a lower high and then again fell sharply and broke 17190 as well.
Finally, the expiry actions lifted Nifty as Reliance also crossed 2400 and Nifty ended just above the previous close.
In the process, Nifty has made a higher high but a lower low.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 53
Top 5 Draggers contributed = 23
Net = +30
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 01
Top 3 Draggers contributed = 189
Net = -188
POSITIVES
Reliance ended above 2400 and Infosys also moved up despite the adverse market conditions.
NEGATIVES
ICICI Bank was under pressure possibly on account of the penalty news and that is what dragged the sentiment on the downside.
Even during the day, ICICI Bank was very choppy - moving up and down within a narrow range.
HDFC continues to be hammered with every rise.
Kotak Bank hit 1890 and from there fell more than 1% to end at 1860. This also impacted the indices a lot.
The indices are now becoming vulnerable to a couple of leaders or laggards and this is not a good sign in my opinion.
TRADING RANGE FOR 17 Dec 21
Nifty Support = In view of the continued selling pressure, I move down the supports to 17050-100.
Should this break, 16750-850 may open up as a support.
Nifty resistance = 17300-380-400-450-500.
Bank Nifty Support = 36000-200-500
Bank Nifty resistance = 36700-850-37000
INSIGHTS / OBSERVATIONS
The Intense and hard hammering of key support levels with relative ease and that too many times during a short period of time is not a good sign. It appears that Bank Nifty may crumble under such pressure.
Reliance and Infosys salvaged Nifty and it appears that the bulls have clearly lost the grip on how to firmly grip the markets.
Though FTSE was strongly positive our indices just ignored the fact as if we are in a different league. Or there's something that I am not able to understand that is happening in the market.
The Bank of England has hiked the interest rates and FTSE is now up almost 1%. What was expected from the Fed has been actioned by the UK regulator and our indices caught cold.
Yesterday, I had mentioned how the markets could open today. Here is the link to my tweet posted in the morning:
What do you feel about this?
Here is the video link –
Thank you, and Happy Money Making!
Umesh
16-12-21
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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