Nifty Technical View.
- Nifty finally breaks the 1-3 day lows. Much needed given the one way move.
- Such has been the move that it is still 1000 points plus from the last crack when Nifty dipped to 13200.
- 13800-14050 is the major cluster of support to watch for below which momentum shifts down.
- Above 14620 would imply the momentum is back up.
Nifty50 - A look through its constituents.
Taking a look at the Top 7 constituents of the Nifty which is equivalent to 52% plus of the Nifty.
HDFC Bank - 10.7 % Weight in Nifty
- Positive till it holds above 1440.
- Hit a new all-time high yesterday when Nifty down.
Reliance Inds - 10.4% weight in Nifty
- A total underperformer in the Nifty move from 11600 to 14700
- On verge of a triangle breakout above 1980-2000.
- Can trigger a move to 2150+.
Infosys - 7.6% weight in Nifty
- Fills the Gap and showing some signs of exhaustion.
- 1200-1250 retest is still a bit away.
HDFC Limited - 7.6% weight in Nifty
- Getting close to the retest of 2500.
- Till it holds 2450-2500 looks positive.
ICICI Bank 6% weight in Nifty
- Reversing from previous highs.
- Below 520 would be a short term breakdown.
TCS Limited - 5% Weight in Nifty
- Still holding strong and only a break below 3120-3150 would indicate some weakness.
Kotak Mahindra Bank - 4.9% Weight in Nifty
- In a short term downtrend.
- 1750 a retest zone.
Conclusion
- Nifty has seen a pause a lot of constituents are still in strong uptrends and have not broken 3 day lows.
- This divergence indicates we might be going into consolidation and not a quick crack on Nifty.
- The Stock Specific moves could continue across broader markets but will get more selective.
- As a short term trader its time to cut down trading size and be extremely selective.
- As an investor one should continue to lookout for stock specific opportunities.
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