Nifty Gets Hammered, Bank Nifty Ends Flat

  • Stock Market Analysis
  • Editors Pick
NIFTY 50 EOD ANALYSIS 18-1-22

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 18337.20

H 18350.95

L 18085.90

C 18113.05

EOD -195.05 points / -1.07%

SGX Nifty 18-1-22 @ 1910h = +16

FII DII = Not yet available

CHART BASED CONCLUSIONS using 5 Minutes Chart

Nifty opened with a modest gap-up and then created the day’s high and then fell 150 points before recovering 100+ points and retesting the earlier close.

And just as FTSE had opened, the commencement of what ended up as a free fall of 250+ points started. In the last 90 minutes, the fall intensified.

Bank Nifty outperformed Nifty today and only because of that Nifty manage to end above 18100.

Nifty has thus made a higher high but a disappointing lower low.

NIFTY WEIGHT LIFTERS & DRAGGERS

Top 5 Lifters contributed = 16

Top 5 Draggers contributed = 68

Net = -52

BANK NIFTY WEIGHT LIFTERS & DRAGGERS

Top 3 Lifters contributed = 687

Top 3 Draggers contributed = 566

Net = +121

POSITIVES

Bank Nifty outperformed Nifty and ended flat.

Nifty held on to 18000+ and Bank Nifty held on to 38000+ as far as day low is concerned.

NEGATIVES

Reliance (NS: RELI ), HDFC (NS: HDFC ), SBI (NS: SBI ), and Infosys (NS: INFY ) underperformed. The downfall was not limited to the heavyweights alone.

India Vix has increased sharply.

TRADING RANGE FOR 19 JAN 22

Nifty support = 17800-17900

Nifty resistance = 18150-200-250-300

Bank Nifty Support = 37500-38000

Bank Nifty resistance = 38400-500-700-900

INSIGHTS / OBSERVATIONS

  • How well Supports & Resistances work are shown in this tweet. From the level drawn earlier, Nifty never made an attempt to retest or come anywhere near the level:

  • Bank Nifty was all over the place and in the end, ensured that Nifty does not break 18000. This is what I observed just before the fall started:

  • What has happened today has always been happening in the markets and is nothing new. But the sentiment was settling in as bullish, and today’s abrupt free fall has washed away the sandcastles built by the bulls. It is time to regroup, review and rework.
  • The only way one can appreciate the market moves is by looking at either 5-minute charts or a lower timeframe than that. There is no other way to get a good feel of what happened in the market today.
  • On the 5-minute chart, the last 90 minutes did not witness a single candle that could breach the high of the previous candle. Sometimes, technical analysis and price action are so simple and obvious [most of the time in hindsight] and yet very hard to follow in real life.

Here is the link to the video:
https://youtu.be/Ydl3WlNFt7Y

The post is for educational & informational purposes only.

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  • NAKKA RAJKUMAR NAKKA RAJKUMAR @NAKKA RAJKUMAR NAKKA RAJKUMAR
    your really right sir
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    • Umesh Rindani @Umesh Rindani
      Thank you for the feedback
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  • Anil Sharma @Anil Sharma
    you are riggt
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    • Umesh Rindani @Umesh Rindani
      Thank you for the feedback
      Like 1
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