Reliance, IT Twins, Drag Nifty as it ends the Day at 16953

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Reliance (NS: RELI ), IT Twins, drag Nifty As It Ends the Day at 16953!

NIFTY O / H / L / C

17009.05/ 17054.30/ 16888.70/ 16953.95 [-218.00/-1.27%]

BANK NIFTY O / H / L / C

35792.35/ 36270.15/ 35511.40/ 36082.35 [+37.60/+0.10%]

India Vix 21.26/+15.86%

FII DII Data -1,432 Crores

SGX Nifty @ 1910h +38

TOP 5 CONTRIBUTORS OF NIFTY

Lifters 17

Draggers 95

Net -78

TOP 3 CONTRIBUTORS OF BANK NIFTY

Lifters 190

Draggers 148

Net +42

CHART BASED DETAILS & ANALYSIS IS GIVEN IN THIS VIDEO:

https://youtu.be/fEKrXRaA-Q8

POSITIVES

ICICI Bank (NS: ICBK ) did not end in the red after its results.

Bank Nifty ended in the green.

NEGATIVE

Reliance ended the day below 2700.

Infosys (NS: INFY ) is back again below 1600.

India Vix jumped up to end above 21.

FIIs keep selling relentlessly.

SUPPORT & RESISTANCE LEVELS

For this week, Nifty is more likely to trade between 16800-17500.

&

Bank Nifty is more likely to trade between 35000-38000 levels during the same period.

TRADING INSIGHTS & OBSERVATIONS

  1. As indicated by SGX Nifty at the start of the weekend, Nifty opened gap-down by 150+ points and then got support around 16940 and then in the next hour or so, registered what turned out to be the day’s high at 17054.
  2. Over the next few hours, it kept drifting lower and kept creating lower highs and lower lows which resulted in it coming very close to 16900 and then in the last hour eventually breaching it to register the day low at 16888.
  3. It then made a good recovery but the price action was kept in check in such a way that Nifty ended the day below 17000.
  4. In the AM session, ICICI Bank was the star performer today and it was supported by the HDFC (NS: HDFC ) twins as well as Axis Bank (NS: AXBK ). Had it not been for ICICI Bank, the indices would have fallen further and maybe the Nifty would have drifted towards 16800 in the AM session itself.
  5. However, the tables turned in the PM session and it was HDFC Bank (NS: HDBK ) that became the lead lifter of the indices leaving behind ICICI Bank.
  6. As and when Reliance hits a new ATH, it has the tendency to fall soon thereafter and that is what happened today as well. In the process, it has also fallen in line with the other heavyweights in shedding some gains before the release of the Q4 numbers. It not only could not trade in the green but also broke 2700 with a fall of 2%+ from the close of 22-4.
  7. Reliance finally ended below 2700 which is a cause of concern for Nifty so unless the HDFC twins, ICICI Bank, and the IT twins get back to a strong positive mood, Nifty would find it hard to rebound.
  8. And today, India Vix rocketed above 21 with a spike of 15%, and this created panic in Nifty in particular as Bank Nifty was able to turn positive even when Nifty was down by more than 200 points. By OED, HDFC Bank, and ICICI Bank ensured that Bank Nifty ended in the green.
  9. In dragging Nifty, Reliance was also joined by the IT twins and SBI (NS: SBI ) as well as Kotak Mahindra Bank Ltd (NS: KTKM ). Infosys came to where it was soon after its results around 1550-1560 levels.
  10. One thing is becoming clear - going ahead, it is likely to be hard for the indices to stay positive/negative for more than a day or two in a row until the Vix ends below 17 and eventually 15. So it is possible that investment turns positive immediately and then suddenly slips into the red. We will have to accept this change as only then we may be able to weather such market conditions.

Note: Posted purely for informational & educational purposes only.

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  • Arjun Mamta @Arjun Mamta
    what is this very much high returns
    Like 0
  • Arjun Mamta @Arjun Mamta
    what is this very much high returns
    Like 0
    • Umesh Rindani @Umesh Rindani
      I didn't get your question. Please specify.
      Like 0
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