Nifty Technical View – Top 7 Weights indicate a Consolidation.

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.


  • 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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