Bank

Indices have free fall, Nifty Break 15000? Nifty Bank 32000?

NIFTY O/H/L/C

15832.25/ 15863.15/ 15335.10/ 15360.60 [-331.55/-2.11%]

NIFTY BANK O/H/L/C

33648.80/ 33756.50/ 32537.95/ 32617.10 [-721.90/-2.17%]

22.83/+3.35%

FII DII data Not yet available

Clever SGX @ 1850h +45

TOP 5 NIFTY CONTRIBUTORS

Lifters 001

Dredgers 109

Net -108

TOP 3 BANK NIFTY CONTRIBUTORS

Lifters 000

Dredgers 480

Net -480

DETAILS AND ANALYSIS BASED ON GRAPHS ARE GIVEN IN THIS VIDEO: https://youtu.be/YVvq1nAt-LI

POSITIVE

The market ended at 3:30 p.m.

NEGATIVE

All heavyweights broke key levels and finished in the red.

India Vix finished just under 23.

SUPPORTS AND RESISTANCE LEVELS

I will venture to draw the lines based solely on the close of the week.

TRADE PERSPECTIVES AND OBSERVATIONS

  1. After finishing at the lowest point in nearly a year on 15-6, opened with the typical troubling 130+ point gap at 15832. This is what the bulls have been waiting for, but more importantly, it is what the FIIs had been waiting for to come up short at higher levels.
  2. And since DIIs don’t seem to have enough or more than enough buying power, FIIs would have been happy to see a Doji candle form on the 5-minute chart at the open as Nifty failed. to clear the opening resistance as well as maximum of 15863.
  3. Nifty had previously recorded highs of 15886 and 15858, and on both occasions fell from the resistance zone. In fact, when it hit a high of 15858, it fell 199 points further to record a new low at 14-6. So that’s what the FII would have hoped to achieve.
  4. Global indices were good and US futures were in good shape, but as the session progressed US futures began to drift and then decline, as did our indices.
  5. From 09:20 to 15:30, Nifty had no inner strength to end in the green on 2 consecutive positive 5 minute candles. Nifty’s level of weakness was such that it continued to drop key levels of 15800, 700, 600, 500 and finally 400!
  6. It appeared that there were no buys from the DIIs and as I write the buy-sell data has yet to update but I wouldn’t be surprised if even the DIIs have ceased to be net sellers.
  7. The weekly expiry was hijacked today by the Call Writers as the Put Writers would have been eliminated along the way. The India Vix fell even as the indices fell. However, in the latter part of the session, the Vix also soared and ended the day just under 23.
  8. Nifty and recorded their lowest levels for the calendar year 2022 and these are not good indicators. I don’t know if the fall is simply due to the infection transmitted by the American markets or to the national signals.
  9. There is no point discussing who drove the indices down as it was a market wide fall and the real issue was that most of the heavyweights fell from the high of the day and around from the lows they would have reached in previous sessions.
  10. However, the range of the fall was so severe that the Nifty during the day fell from the 15863 high to 15335 [528 points] and Bank Nifty fell from 33756 high to 32537 low, a drop of 1218 points!
  11. The most important point to note is that the Nifty moved from the 15863 high to the 15335 low in one day. However, it took Nifty 2 months to cover this distance between May 24 and the end of July 2021. If this is any indication, we have a long and bumpy road.

Note: Published for informational and educational purposes only.