Bank Nifty roars, so does India Vix. What Next?
NIFTY 50 EOD ANALYSIS 5-1-22
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 17820.10
H 17944.70
L 17748.85
C 17925.25
EOD +120.00 points / +0.67%
SGX Nifty 5-1-22 @ 1830h = -8
FII DII = Not yet available
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened flat and then there was a mini sell-off as it tried to trade above the previous close. However, it found support around 17750 and then moved up a 100+ points and found resistance around 17850 and was back to 17800.
It then never looked back and made a steady climb to hit the day high and close just below the level and above 17900.
Both the indices have made higher highs and higher lows which is a good sign.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 99
Top 5 Draggers contributed = 45
Net = +54
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 606
Top 3 Draggers contributed = 00
Net = +606
POSITIVES
Bank Nifty has closed comfortably above 37000.
Nifty ended the day despite pressure from IT leaders and HDFC, above 17900.
Bullishness in Banking & Finance scrips was strong.
FIIs have bought in excess of 1,200 Crores.
NEGATIVES
IT leaders dragged Nifty - Infosys in particular which was a negative yesterday as well.
Spike in India Vix as it closed above 17.
TRADING RANGE FOR 05 JAN 22
Nifty support = 17400-500 [the range not revised upwards on account of spike in India Vix]
Nifty resistance = 17950-18000-18100
Bank Nifty Support = 36000-200
Bank Nifty resistance = 37800-38000-200
INSIGHTS / OBSERVATIONS
The most surprising fact of the day was that India Vix has roared along with Bank Nifty. It is an uncommon occurrence and is signaling that there is panic setting in at higher levels. Could this be on account of the rising Covid related uncertainties?
Nifty underperformed Bank Nifty on account of Infosys, TCS, and HDFC. The good thing is that the higher low of Nifty is now 150+ points above. This indicates the underlying bullishness at lower levels.
Bank Nifty made a bounce of 1100 points from the day low which is good and that is the reason why it was able to outperform Nifty today. The top 3 leaders contributed 600+ of these indicating that the index wide bullishness was good.
Of the top 5 draggers of Nifty, the first 4 are from the IT pack. And all the top 5 lifters of Nifty are from Banking & Finance. So it was Banking & Finance Vs IT.
What do you feel about this?
Here is the link to the video:
youtu.be/azAys0ZQKAY
Thank you, and Happy Money Making!
Umesh
5-1-22
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 17820.10
H 17944.70
L 17748.85
C 17925.25
EOD +120.00 points / +0.67%
SGX Nifty 5-1-22 @ 1830h = -8
FII DII = Not yet available
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened flat and then there was a mini sell-off as it tried to trade above the previous close. However, it found support around 17750 and then moved up a 100+ points and found resistance around 17850 and was back to 17800.
It then never looked back and made a steady climb to hit the day high and close just below the level and above 17900.
Both the indices have made higher highs and higher lows which is a good sign.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 99
Top 5 Draggers contributed = 45
Net = +54
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 606
Top 3 Draggers contributed = 00
Net = +606
POSITIVES
Bank Nifty has closed comfortably above 37000.
Nifty ended the day despite pressure from IT leaders and HDFC, above 17900.
Bullishness in Banking & Finance scrips was strong.
FIIs have bought in excess of 1,200 Crores.
NEGATIVES
IT leaders dragged Nifty - Infosys in particular which was a negative yesterday as well.
Spike in India Vix as it closed above 17.
TRADING RANGE FOR 05 JAN 22
Nifty support = 17400-500 [the range not revised upwards on account of spike in India Vix]
Nifty resistance = 17950-18000-18100
Bank Nifty Support = 36000-200
Bank Nifty resistance = 37800-38000-200
INSIGHTS / OBSERVATIONS
The most surprising fact of the day was that India Vix has roared along with Bank Nifty. It is an uncommon occurrence and is signaling that there is panic setting in at higher levels. Could this be on account of the rising Covid related uncertainties?
Nifty underperformed Bank Nifty on account of Infosys, TCS, and HDFC. The good thing is that the higher low of Nifty is now 150+ points above. This indicates the underlying bullishness at lower levels.
Bank Nifty made a bounce of 1100 points from the day low which is good and that is the reason why it was able to outperform Nifty today. The top 3 leaders contributed 600+ of these indicating that the index wide bullishness was good.
Of the top 5 draggers of Nifty, the first 4 are from the IT pack. And all the top 5 lifters of Nifty are from Banking & Finance. So it was Banking & Finance Vs IT.
What do you feel about this?
Here is the link to the video:
youtu.be/azAys0ZQKAY
Thank you, and Happy Money Making!
Umesh
5-1-22
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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