India VIX Shines & Indices Lose Control

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NIFTY 50 EOD ANALYSIS 24-1-22

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 17575.15

H 17599.40

L 16997.85

C 17149.10

EOD -468.05 points / -2.66%

SGX Nifty 24-1-22 @ 1845h = -17

FII DII = Not yet available

CHART BASED CONCLUSIONS using 5 Minutes Chart

Nifty opened with a mild gap-down and attempted to hit 17600, but it failed and then till 1400h, it was in a relentless fall as one after the other scrips fell making it impossible for the index to bounce back up.

The pressure was very intense and Nifty fell more than 600 points from the previous close of 17617. This is quite an unusual move for Nifty and a rare occurrence.

Finally, Nifty found support around 17000 and made a turbulent recovery to end 150 points higher from the day low.

Bank Nifty was able to recover in a better manner than Nifty.

NIFTY WEIGHT LIFTERS & DRAGGERS

Top 5 Lifters contributed = 03

Top 5 Draggers contributed = 195

Net = -192

BANK NIFTY WEIGHT LIFTERS & DRAGGERS

Top 3 Lifters contributed = 26

Top 3 Draggers contributed = 516

Net = -490

POSITIVES

It was only because of good numbers reported by ICICI Bank (NS: ICBK ) that it did not fall much though it ended the day below 800. If and when the markets recovery, the scrip is likely to do well and could end up being the savior.

Nifty ended above 17100 and Bank Nifty 36800.

NEGATIVES

There was no shortage of negatives and it was red all over the market.

Reliance (NS: RELI ), Bajaj Finserv (NS: BJFS ), Infosys (NS: INFY ), and HDFC Bank (NS: HDBK ) were the leaders in pulling the indices down as the FIIs may have used them to hammer down the indices.

TRADING RANGE FOR 25 JAN 22

I will leave this blank for now as the market moves were very wild today. I prefer to wait for tomorrow’s action to play out before drawing any lines as most of the support lines were breached as if they were paper walls.

INSIGHTS / OBSERVATIONS

  • The most significant gains made were by India VIX at 20.83% and this is what broke the back of the Indices, Nifty, in particular. India Vix ended at 22.83 and this was the first closing above 20 after 30-11-21.
  • The last time Nifty made a move of 500+ points [gap between day high and day low] was on 22-11-21 when Nifty had made a low of 17280. Today’s low was 16997. And Nifty was down on EOD basis by 500+ points on 26-11-21.
  • On account of the sharp increase in India Vix, the indices moved with wide spreads and also in a wild manner with 50-100 points seen on 5-minute candle very often.
  • Bank Nifty ended with -626 of which 516 points were contributed by HDFC (NS: HDFC ) Bank, SBIN, and Kotak Bank. Even then the index has performed better than Nifty on a closing basis which is the consolation for the day.
  • If there was a classification Retail Buying with FIIs and DIIs, I think today Retailers would have supported the selling of FIIs and DIIs. I am wondering why NSE cannot have this number also released for improved transparency.
  • Imagine the extent of bearishness at the open itself that Nifty high was 17599.40 - it could not even add 0.60 points to hit 17600.

Here is the link to the video:
https://youtu.be/1GX45Bi1Gck

The post is for educational & informational purposes only.

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  • junos mahanandia @junos mahanandia
    Excellent
    Like 0
    • Umesh Rindani @Umesh Rindani
      Thank you
      Like 0
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