Nifty Ends the Week at 15699, Bank Nifty at 33627 - is the Tide Changing?

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Nifty Ends The Week at 15699, Bank Nifty at 33627 - Is the Tide Changing? [24-6-22]

NIFTY O / H / L / C

15657.40/ 15749.25/ 15619.45/ 15699.25 [+142.60/+0.92%]

BANK NIFTY O / H / L / C

33434.80/ 33721.90/ 32390.25/ 33627.45 [+492.45/+1.49%]

India Vix 20.55/-1.58%

FII DII Data Not yet available

SGX Nifty @ 1705h Flat

TOP 5 CONTRIBUTORS OF NIFTY

Lifters 84

Draggers 13

Net +71

TOP 3 CONTRIBUTORS OF BANK NIFTY

Lifters 337

Draggers 000

Net +337

CHART BASED DETAILS & ANALYSIS IS GIVEN IN THIS VIDEO: https://youtu.be/MOAn8SuW4ds

POSITIVES

The index heavyweights - the HDFC (NS: HDFC ) twins, Reliance (NS: RELI ), and ICICI Bank (NS: ICBK ) ended in the green and that is what helped the indices closed on a positive note.

Nifty has managed to close the week above & Bank Nifty above

NEGATIVE

The IT twins came under intense selling pressure and remained choppy throughout the day.

SUPPORTS & RESISTANCE LEVELS

Nifty 15200-400

Bank Nifty 32600-800

TRADING INSIGHTS & OBSERVATIONS

  1. The global cues were quite strong and the US Futures were also in the green therefore, the Nifty opened with a gap-up of 100 points. This was a welcome and refreshing change and it was good to see all the heavyweights except HDFC open in the green.
  2. Bank Nifty was leading the pack at the open and HDFC Bank (NS: HDBK ) was the leader amongst the community and when it is at the forefront, the rest generally fall in line if there is no other cause of concern.
  3. And then as mentioned, Nifty was able to clear 15700 with relative ease as Reliance as well as HDFC also jumped up and made things good for Nifty. However, Reliance was very volatile and was unable to sustain the levels above 2500 after clearing the same in a spike.
  4. In such market conditions when the overall sentiment is bearish and a bullish session starts, there would always be some heavyweights who may not be able to sustain and the rest may be trying to move up or remain firm. Such price actions make it hard for Nifty to make newer highs and therefore, it tends to either move sideways or almost stall.
  5. Unfortunately, such instances give rise to situations where the FIIs would be willing to jump in and start pushing the prices on the downside. Their selling might and the picking of the hammering boy are generally such that the indices tend to give in.
  6. And soon after 1000h, that is what started happening as after making a high of 15749, Nifty started fading and then started falling as well. This was mainly on account of the IT twins who were in the red from the green zone and also on account of Reliance which fell from the high of 2511 to 2470 [as I write this line].
  7. And now, all eyes are on the FTSE open and then the weekly close theatrics that may be in store for us in the evening session. It is wait & watch for now.
  8. At the appointed time, FTSE opened in the green, but there was not much change in the way Nifty was behaving.- it was moving within a range of 75 points and even the Vix was not declining as the choppiness was intense.
  9. The reason for the choppiness was mainly on account of Reliance & Infosys (NS: INFY ). Last evening, Accenture (NYSE: ACN ) came out with the revenue guidance and it was not positive. This meant that our IT fraternity is also going to start weeping and the IT twins in particular did not disappoint.
  10. And this intense choppiness, Nifty was dragged below the opening low of 156650 and made a new low at 15619. This was just before FTSE had opened. Thereafter it went in for yet again range-bound moves as it was finding resistance around 15665 and in the last 90 minutes it started attempting to cross 15700 but there was an intense fight given by the bears around the level.
  11. It appeared to be a battle of nerves as after recovering from the lows, Reliance was fighting for 2500, HDFC, which was firm throughout the day had breached 2200 but had fallen back below the line and it was trying to sail past that, and Nifty was going up and down around the 15700 mark.
  12. Clearly, a close above 15700 on Nifty would be detrimental to the bears' interests, which is why the intense fight. Whereas the bears used Infosys, TCS (NS: TCS ), and Reliance to fight, the bulls used the banks as Bank Nifty was firm and comfortably placed above 33600.
  13. The week ended with the Nifty closing at 15699, and Bank Nifty closing at 33627. The most important question to ask is - has Nifty now formed a bottom at 15183?

Note: Posted purely for informational & educational purposes only.

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  • Sanjay Gyms @Sanjay Gyms
    pre market sentiment help me
    Like 0
  • Prasanta Chel @Prasanta Chel
    opening of Bank nifty on 4thjuly
    Like 0
  • Prasanta Chel @Prasanta Chel
    opening of Bank nifty on 4thjuly
    Like 0
  • Umesh Rindani @Umesh Rindani
    Until further updates, I will no longer be posting articles here. Thank you for your support till now. Much appreciated. 🙏🙏
    Like 0

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