Indices in a fix as India VIX hits a Six!

  • Forex Analysis
NIFTY 50 EOD ANALYSIS 6-1-22

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 17768.50

H 17797.95

L 17655.55

C 17745.90

EOD -179.35 points / -1.00%

SGX Nifty 6-1-22 @ 1855h = +36

FII DII = Not yet available

CHART BASED CONCLUSIONS using 5 Minutes Chart

Nifty opened below 17800 and then kept drifting like a typical bearish wave and made a low of 17655 when it found some buying interest.

By then it was well past noon and then it made a slow recovery with a lot of wobbling but each such incident made a higher low and a higher high which helped it close the day above 17700.

Nifty has made a lower high and a lower low.

NIFTY WEIGHT LIFTERS & DRAGGERS

Top 5 Lifters contributed = 22

Top 5 Draggers contributed = 120

Net = -98

BANK NIFTY WEIGHT LIFTERS & DRAGGERS

Top 3 Lifters contributed = 26

Top 3 Draggers contributed = 228

Net = -222

POSITIVES

Bank Nifty managed to have its OHLC above 37000.

Some of the Auto stocks managed to stay positive.

NEGATIVES

Reliance (NS: RELI ), HDFC (NS: HDFC ) twins, IT twins have been beaten up badly. Recovery may take a while.

The volatility was very high even though the charts may not reflect the same.

India VIX continues to rise even on an EOD basis.

TRADING RANGE FOR 06 JAN 22

Nifty support = 17400-500

Nifty resistance = 17750-800-850-900

Bank Nifty Support = 36000-200

Bank Nifty resistance = 37600-800-38000

INSIGHTS / OBSERVATIONS
  • This tweet sums up what was on the cards and what happened as soon as the markets opened:

https://twitter.com/UmeshRindani/status/1478956368014950400?s=20

  • Here is an interesting observation re Nifty:

https://twitter.com/UmeshRindani/status/1479070943083257864?s=20

  • Yesterday, Bank Nifty lifters had contributed 50%+ of the total gains. Today, they simply switched sides and have contributed the entire fall on EOD basis. This is the power of the trip of HDFC Bank (NS: HDBK ), ICICI Bank (NS: ICBK ), and Kotak Mahindra Bank Ltd (NS: KTKM ). It is best to stay on the right side of their moves than against.
  • Looks like the big heads of IT are pricing in a not so great Q3 results. Infosys (NS: INFY ) fell 5%+ from its high and TCS (NS: TCS ) fell 3%+ from its recent highs. The previous quarter TCS had registered an ATH just ahead of its results.
  • There were 4 gap-up candles of Nifty in a row and it looked like something was hanging in the air and today also it appears to be in the air but on the downside. This can be viewed on the daily charts.
  • Nifty’s EOD price is just below the low of 5-1. This indicates that the bears were quite strong in holding Nifty lower even as it was trying to recover with the expiry day pull-up actions.

What do you feel about this?

Here is the link to the video:
https://youtu.be/jnhLdw7BmQQ

Thank you, and Happy Money Making!

Note -
Not SEBI registered
The post is for educational & informational purposes only.

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