Nifty Ends Jan 2022 Series on a Negative Note

  • Stock Market Analysis
  • Editors Pick
UMESH RINDANI
NIFTY 50 EOD ANALYSIS 27-1-22

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 17062.00

H 17182.50

L 16866.75

C 17110.70

EOD -167.80 points / -0.97%

SGX 17940|Nifty 27-1-22 @ 1845h = -36

FII DII = Not yet available

CHART BASED CONCLUSIONS using 5 Minutes Chart

Nifty opened with a big gap-down of 200+ points and then immediately tested the opening high area and then fell again.

It then broke 17000 to retest the 16920 zones and went up by 100+ points only to fall further 150+ points and almost went close to the low of 25-1 around 16850.

Just after the stroke of noon, Nifty found support and then relentlessly went up by 300+ points but failed to hold on to the higher area in the last hour on account of monthly expiry and collapsed to an end above 17100.

Nifty has made a higher low, but a lower high - an unusual sight to watch.

NIFTY WEIGHT LIFTERS & DRAGGERS

Top 5 Lifters contributed = 61

Top 5 Draggers contributed = 96

Net = -35

BANK NIFTY WEIGHT LIFTERS & DRAGGERS

Top 3 Lifters contributed = 382

Top 3 Draggers contributed = 182

Net = +200

POSITIVES

Bank Nifty towered over Nifty and rescued the elder sibling from the lower levels.

State Bank Of India (NS: SBI ) and Axis Bank (NS: AXBK ) have performed well in the last 2 sessions shouldered a lot of responsibilities and supported Bank Nifty and therefore Nifty.

Rebounce in the Auto leaders is a good sign and so also the move up in Kotak Mahindra Bank Ltd. (NS: KTKM ) ahead of its results.

NEGATIVES

Infosys (NS: INFY ), TCS (NS: TCS ), HDFC (NS: HDFC ), and Reliance (NS: RELI ) continue to disappoint.

Nifty failed to cross 17200 despite Bank Nifty towering ahead.

TRADING RANGE FOR 28 JAN 22

Nifty Support = 16800-17000

Nifty Resistance = 17200 and above

Bank Nifty Support = 36500-800

Bank Nifty resistance - 38000-200-500

INSIGHTS / OBSERVATIONS
  • What an outstanding performance by Bank Nifty today to end the Jan series as it ended the day [and Jan series] with a good strong close when Nifty failed to come anywhere closer to the previous close.
  • The underlying positivity in SBIN, Kotak Bank, and Axis Bank has lifted Bank Nifty considerably despite HDFC Bank (NS: HDBK ) and ICICI Bank (NS: ICBK ) going in a different direction. This is a welcome change as the reliance on the bigger heads was overcome.
  • Had it not been for Bank Nifty, Nifty would have closed another 50-75 points lower which is very concerning.
  • Infosys and TCS have been hammered to the core and the fundamentals have been ignored by the depressive global sentiments in relation to the IT sector. The disappointing downturn in TCS, in particular, despite the buy-back offer at 4500 is unnerving. Viewed differently, the slide in IT biggies has created good trading/investing opportunities.
  • It is said that the markets are simple, our minds make it complicated and this tweet says it all:

What do you feel about this?

Here is the link to the video:
https://youtu.be/XMstXp57iLc

The post is for educational & informational purposes only.

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  • Sridhar N Rao @Sridhar N Rao
    Nifty could gap up and really to 17600, takea pause and then decide whether to move further up to 18350 or go downwards from 17600.
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    • Umesh Rindani @Umesh Rindani
      Thank you for the feedback.
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  • Naa Chaduvu @Naa Chaduvu
    may i buy nifty futures? at current market price.
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    • Umesh Rindani @Umesh Rindani
      It's entirely up to you. I don't give any recommendations for buy/sell. I only share my analysis and experiences.
      Like 0
    • praveen gore @praveen gore
      no, this time is crashing momentum.
      Like 0

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  • Bollywood HD Gaane @Bollywood HD Gaane
    kal nifty kitna point up jayega
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    • Umesh Rindani @Umesh Rindani
      No idea
      Like 0

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