Nifty 29th Aug 2017

Market Aug 29th

The market gave back most of the gains from recent sessions as it lost 116 points in the day's trading. It reached a low of  9783 and recovered to close at 9796, marginally below the psychological level of 9800. 

The sentiment is more defensive rather than bearish. At such times, it is believed that the money flows out of stocks to safer havens such as gold. Incidentally as I write, Gold has rallied 0.75% today in the international market. And the fall in the Nifty is 1.18%. Such geo-political news triggers sell orders from Institutions, who generally take a conservative view and hedge their overall position across countries, markets and currencies to safer avenues or cash. How long the uncertainty will last will depend on the geo political noise. If it calms down quickly, then the buying will resume. If the geo political noise continues, then Bears may use the opportunity to push for a correction. A break of 9680 which is seen as a significant support as the previous swing low  will take the market in the direction to probably 9500-9450 levels . 

All the broad based indices were in the red, indicating selling pressure across the market. All sectors were also in the red. The advance decline ratio of indicating 2.5 scrips declining for every stock that ended in the green- in a sharp contrast to yesterday when scrips rose for every decline.  


India Vix and Derivatives Data for Aug 29th

India Vix rose for a second day in a row. It is now above all key moving averages (other than the 10 day SMA) indicating bearish activity in the nifty options.

A study of the Nifty options data indicates a continued support for Nifty at 9800 while the bears have managed to push the resistance from 10K to 9900. The Nifty expiry range is now narrower between 9800 and 9900. We have two more trading sessions and the geo political stances will probably dictate this expiry outcome.

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Disclaimer :

This blog is for educational and awareness purpose only. The views are intended for discussion and exchange of views rather than an expert opinion. This is not an recommendation to buy or sell or invest in the stock market and derivatives market. Kindly exercise caution and perform your own due diligence before investing in the market, after fully and clearly understanding the risks involved.



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