EquityCompound2

30th Aug' 2022 (Evening)  --  |  Written at 8.15 PM on 31st Aug' 2022  | After the anxiety on Monday, Globally the sentiment was a bit more confident and that boosted the morale of Indian Investors. Buying was seen across the board and the Indices made stellar gains in a single trading day. #Nifty gained 446 points to close at 17759 and #BankNifty gained 1260 points to close at 39536. With this both #Nifty and #BankNifty closed above the highs of Thu (monthly closing). This may be seen as a sign of strength. However, lets look at the levels first and then we will discuss further If we look closely at the levels we find the first support levels are now a bit far from the spot price on both #Nifty and #BankNifty. This is due to heavy buying seen on Tuesday. The first levels are now close and the markets have seen a sharp rise on Tue. I would expect the Indices to consolidate at the current level now. With some short term traders taking some profits out, Both #Nifty and...

26th Aug' 2022 (Evening)   --   |  Written on 28th Aug' 2022 at 1.30 PM  | Page 1/2 After a fag end cool down on Thursday, Markets opened gap up on Friday. Made some gains from there, however got sold off and slipped to close at the Day lows. While #Nifty saw a continuous slide, #BankNifty saw some support at the lower end and traded in a range. Both #Nifty and #BankNifty made inside candles on a daily chart. The change in behavior I observe is that after the follow up selling on Monday, for two days ie Tue and Wed, the markets saw a gap down opening and then buying coming in to support at these lows, with market closing at day highs. On Thu and Fri the Indices saw gap up opening and then selling coming in at some time to close at day lows.  So a bit of change in the behavior and this is driven from the #FII changing their stance in the markets. However, as in the past, the #DII came to rescue and supported the markets. Levels : #FII on Thu closed a lo...

24th Aug' 2022 (Evening)    --   |  Written at 9.00 PM  | Markets opened gap down today as well. The intraday pattern was a bit similar to yesterday, with some quick buying, then selling and the dip getting bought again to close at the day highs.  Both #Nifty and #BankNifty made strong bullish candles on the daily chart. #BankNifty though seems to be relatively stronger than #Nifty. The price action in the second half of the day convincingly took off the first resistance mentioned yesterday. #Nifty on the other hand is still battling the same. However, both #Nifty and #BankNifty are staring at this level as the barrier between the recent high and the current level. The demand that comes in at the opening levels has been pretty strong.  Levels : Analyzing the charts and the price action today, I get the feeling that both the Indices made an attempt to take down the resistance mentioned yesterday. First attempt failed and the second attempt of #Bank...

24th Aug' 2022 (Evening)  --  |  Written at 12.30 AM  | As mentioned yesterday, the indices opened gap down. However, from then a sharp recovery was seen, almost up to the resistances I mentioned yesterday. Some intraday profit booking was seen from this point and then this dip was bought and the Indices closed at the high end of the trading range for the day. While #Nifty closed at the first high made, #BankNifty closed took down the day high made and closed above the first high. So, while both the Indices mad a bullish candle for the day, they actually made a daily candle with a lower high and a lower low as compared with yesterday. The buying interest seen at the opening lows today indicate a strong demand at that levels. Also the #FII ended up buying today. So let us look at the levels first Looking closely at the levels, after the recovery today, the spot price is now close to their first resistance for both #Nifty and #BankNifty. Important to see is that if the...

22nd Aug' 2022 (Evening)  --  |  Written at 11.00 PM  |  As expected and mentioned in my notes yesterday, the Indices opened gap down and then continued to slide, closing at the lower end of today's trading range. #Nifty and #BankNIfty both made strong bearish candles on a daily chart. The weak global cues this morning and through the day, did not give any reason to our markets to take a breather. A small support picked up around noon was sold off and this levels actually becomes our first resistance for tomorrow. Levels first : So looking at the levels now, #Nifty is looking at 17425 as the first level and could actually look for a deeper correction if this is taken down. On the flip side we may see resistance at 17600 if it tries to go up. #BankNifty is looking at 38150 and 38500 as the levels (with a similar commentary as #Nifty) from here. Looking at the way Asian markets closed today, Europe and US is trading as of now, we may see another gap down opening t...

19th Aug' 2022 (Evening)  --  |   Written on 21st Aug' 2022 at 5.00 PM   | Page 1/2 After a stellar run, Friday gave a bit of  a shocker to the markets. After the bearish candles made by #Nifty and #BankNIfty  made on 16th Jun, this is the longest bearish candle. #Nifty closed 208 point below the opening level and #BankNifty closed 774 points below the opening level. The trading range for #Nifty on Friday was 282 points and for #BankNifty the trading range was 911 points. Both the Indices made bearish engulfing candles and this becomes important as these are made after a wild upswing. Markets sharply rejected #Nifty at 17992 and #BankNifty at 39759. So these levels would remain as strong resistances for now. Lets look at the levels : If one closely looks at the levels above, the current trading range (First support and first resistance) are in the extreme high end of the larger trading range (Strong Support to Strong Resistance) and this is the ca...

18th Aug' 2022 (Evening)   --   |  Written at 11.00 PM   | A rangebound expiry today, probably would have kept some people at edge. However, expiry traders would have made good money if they changed direction timely. Else this may have been disastrous.  Both #Nifty and #BankNifty made bullish candles on the daily chart. A large part of the candle on #BankNifty is driven from short covering. With most of the stocks in #Banknifty near their resistance, it would be now interesting to see how it moves from here. Lets look at the levels : #FII sold today in cash after some time. They also unwound a large number of longs on Index Futures and Stock futures as well, creating a good amount of shorts as well at the same time. Looking at the levels where this has happened, this could be an indication of a bit of profit booking coming up. The Dollar Index is now again above 107 and the concerns of rate rise is back on the street. The jobless claims data in US...

17th Aug' 2022 (Evening)  --  |  Written at 9.30 PM  | #Nifty again posed a very strong stance today. Making a bullish candle on the daily chart, #Nifty closed above a strong resistance. #BankNifty also displayed strength, though it is still in a critical zone.  From now on, both #Nifty and #BankNifty are at a stone throw's distance from its all time highs. #Nifty all time high was 18604 and #BankNifty all time high was 41829. Both #Nifty and #BankNifty have now shown a breakout from the falling channel generated from its all time highs. Levels : As mentioned yesterday, while the charts suggest a breakout from here, i still feel that the strength is only in select Index stocks. While #BankNIfty and #NiftyFMCG seems extremely strong, #NiftyIT is still not in consensus. Also the #NiftyMidcap is also not showing stealth. Actually this may cause some capital movement from the large stocks to Midcaps. However we need to wait and see if the interest of smart money rem...

16th Aug' 2022 (Evening)  --  | Written at 6.00 AM on 17th Aug' 2022  | The highlight of yesterdays trading was that the markets did not reject the price from the levels where it opened. While there was congestion and both #Nifty and #BankNIfty saw some resistance, they got support and held the levels.  While #Nifty made a bullish candle on the daily chart, #BankNIfty made a small bearish candle with a decent upper and lower shadow indicating a small range of trading. Important to see which side does it breakout from yesterdays range. Levels : The highlight for some time has been the #FII buying and their return into the cash market. Markets enjoyed this support yesterday as well, with #FII buying 1376Cr of equity and the #DII liquidating a small amount. The broader Indices also saw strength with the market width in the #Nifty500 also improving yesterday.  The indices however have not shown a breakout yet. Most of the important stocks in #BankNIfty are in the re...

12th Aug' 2022 (Evening)  --  |  Written on 15th Aug' 2022 at 11.00 PM  | The Indices made bullish candles again on Friday. While #Nifty saw a dip and the same was bought, #BankNifty was more or less bullish through the day. #Nifty made a bullish candle with a decent upper and lower wick, indicating a range, #BankNifty made a bullish candle with a long lower shadow indicating support from the lower levels of the day. Nifty faced some resistance at the higher level of the day, though its travers to the levels I mentioned earlier seem to be intact. So, while #Nifty still has to take down 17800, #BankNIfty has already taken down the strong resistance i mentioned in my notes. Primarily driven by #ICICIBank, it seems extremely strong as of now. Lets look at the levels now : Looking at the levels above, I feel, #Nifty will finish its journey to 17800 tomorrow and the larger question for it will be, where will it go from there? Now the answer to this partially sits in the a...

10th Aug' 2022 (Evening)  --  |  Written at 11.00 PM  | An exciting day today, the indices were kind of weak through the day and witnessed some selling, though the indices held ground and did not drop much. Rather, most of the loss was recovered through the day. #Nifty and #BankNifty both made bearish candles on the daily chart. Though they both made higher highs and higher lows, indicating support. #BankNifty however, made a Doji candle and indicates some uncertainty ahead. Lets look at the levels and then we discuss : The trading range for both #Nifty and #BankNifty were narrow today and hence the first supports and resistance both are very close. This could be tricky for tomorrow as we have the weekly expiry tomorrow and the US market have taken an interesting turn today. With a slightly lower Inflation and an announcement of a package for the Semi conductor Industry, both #DowJones and #Nasdaq have fired and are extremely positive. This would probably lead to a g...

5th Aug' 2022 (Evening)  --  | Written on 7th Aug' 2022 at 9.00 PM  | First of all, apologize for being a bit irregular for some time. Sometime, the work does not allow the luxury to sit and make peaceful notes. We have to be content with some quick observation from the charts. Bulls have been charging over the bears for some time now. After that dip of #Nifty to 15183 (on 17th Jun), bulls have not taken a breather.  Last week on Thu, at one point the steep fall gave a feeling of some profit booking, however, the same was bought and we were back, charging again. Though this would have helped the market lose some heat and cool down.  On Friday, both #Nifty and #BankNIfty made inside candles and traded in a zone. We may breach this range of 17161 to 17474 on #Nifty and 37249 and 38231 on #BankNifty and that would set us for the next targets on these indices.  So, let us look at the levels  A quick look at the above levels and some analysis of charts in b...