Bulls unable to hold on, yet indices end in green
NIFTY 50 EOD ANALYSIS 21-12-21
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 16773.15
H 16936.40
L 16688.25
C 16770.85
EOD +248.15 points / -0.94%
SGX Nifty 21-12-21 @ 1930 = +25
FII DII = Not yet available
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a significant gap up and was able to sustain the same and kept moving up as the day progressed.
However, it then became obvious around 16940 levels where there is an earlier intraday resistance that the bears may not let the rally continue. And at 1300h, that is what happened and the sell-off continued and almost threatened to wipe out all the gains.
Finally, in the last hour Nifty managed to recover well and ended in the green.
Nifty has made a higher high and a higher low.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 60
Top 5 Draggers contributed = 16
Net = +44
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 246
Top 3 Draggers contributed = 95
Net = +151
POSITIVES
Both the indices ended the day in green.
HDFC Bank and ICICI Bank were the leaders in lifting the indices and remained positive throughout.
Reliance also joined these two in helping Nifty not give up all the gains that had been made in the first half of the day.
NEGATIVES
The manner in which the indices fell in the PM session indicates that there are large sell orders around 16900-950 and it is unlikely that the bears would give up the territory that easily.
HDFC, SBIN, and Kotak Bank remain the problem scrips for the bulls as these are the scrips where every rise seems to be getting sold in to.
TRADING RANGE FOR 22 DEC 21
Nifty support = 16300-400
Nifty resistance = 16800-900-950-17000
INSIGHTS / OBSERVATIONS
For the 2nd in a row, Nifty OHLC was below 17000. This is an unusual sight in recent times. This also shows that the bears have not yet given up and any rally is likely to get sold into unless there is ferocity in the up move which was not seen on the horizon today.
Whenever FIIs are the net sellers on the previous day and Nifty is trading with a significant gap up and the same is held on to, it would be safe to expect a sell-off in the PM session followed by a recovery which may not be full.
Catching the last set of bears off guard and just when they have covered their shorts and switched to longs, comes the sharp sell-off which shakes the new longs out and before they can decide to re-enter, the fall is recovered in no time.
So it is necessary for traders to be better Mentalists than good traders as only such people would be able to go with the flow.
Yesterday’s massive fall was attributed to global Omicron fears even as India is for now better placed than the rest of the world. I am wondering what media would attribute the positivity in global indices to? Is Omicron gone? If we remove such noise, market moves and numbers would make better sense.
And here is my latest tweet about an observation made:
What do you feel about this?
Here is the video link –
Thank you, and Happy Money Making!
Umesh
21-12-21
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 16773.15
H 16936.40
L 16688.25
C 16770.85
EOD +248.15 points / -0.94%
SGX Nifty 21-12-21 @ 1930 = +25
FII DII = Not yet available
CHART BASED CONCLUSIONS using 5 Minutes Chart
Nifty opened with a significant gap up and was able to sustain the same and kept moving up as the day progressed.
However, it then became obvious around 16940 levels where there is an earlier intraday resistance that the bears may not let the rally continue. And at 1300h, that is what happened and the sell-off continued and almost threatened to wipe out all the gains.
Finally, in the last hour Nifty managed to recover well and ended in the green.
Nifty has made a higher high and a higher low.
NIFTY WEIGHT LIFTERS & DRAGGERS
Top 5 Lifters contributed = 60
Top 5 Draggers contributed = 16
Net = +44
BANK NIFTY WEIGHT LIFTERS & DRAGGERS
Top 3 Lifters contributed = 246
Top 3 Draggers contributed = 95
Net = +151
POSITIVES
Both the indices ended the day in green.
HDFC Bank and ICICI Bank were the leaders in lifting the indices and remained positive throughout.
Reliance also joined these two in helping Nifty not give up all the gains that had been made in the first half of the day.
NEGATIVES
The manner in which the indices fell in the PM session indicates that there are large sell orders around 16900-950 and it is unlikely that the bears would give up the territory that easily.
HDFC, SBIN, and Kotak Bank remain the problem scrips for the bulls as these are the scrips where every rise seems to be getting sold in to.
TRADING RANGE FOR 22 DEC 21
Nifty support = 16300-400
Nifty resistance = 16800-900-950-17000
INSIGHTS / OBSERVATIONS
For the 2nd in a row, Nifty OHLC was below 17000. This is an unusual sight in recent times. This also shows that the bears have not yet given up and any rally is likely to get sold into unless there is ferocity in the up move which was not seen on the horizon today.
Whenever FIIs are the net sellers on the previous day and Nifty is trading with a significant gap up and the same is held on to, it would be safe to expect a sell-off in the PM session followed by a recovery which may not be full.
Catching the last set of bears off guard and just when they have covered their shorts and switched to longs, comes the sharp sell-off which shakes the new longs out and before they can decide to re-enter, the fall is recovered in no time.
So it is necessary for traders to be better Mentalists than good traders as only such people would be able to go with the flow.
Yesterday’s massive fall was attributed to global Omicron fears even as India is for now better placed than the rest of the world. I am wondering what media would attribute the positivity in global indices to? Is Omicron gone? If we remove such noise, market moves and numbers would make better sense.
And here is my latest tweet about an observation made:
What do you feel about this?
Here is the video link –
Thank you, and Happy Money Making!
Umesh
21-12-21
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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