Bulls win the Expiry Day Battle. Nifty 31 Aug 2017

Market Aug 31

All is well that ends well. The bulls successfully regained 9900 to close at 9917.90.  As mentioned
in my blog yesterday ,  the options data indicated a fight for 9900. And the morning session was dominated by the bears and the afternoon session the bulls slowly crept up from behind and finally raced to the finish line. This was a psychological victory. See the hourly chart which shows the domination of the bears and the bulls.



For the rally to continue, we need to see follow on bullish sentiment tomorrow and early part of next week. A breaking of the previous high would be excellent to signal a breakout buy. However, the proof has to be in the funds flowing into key stocks that comprises of the various indices.

Enough of wishful thinking and back to the statistics, the broadbased indices closed in green except for the Nifty Next 50 which fell by 0.04% indicating a positive sentiment across the market. The sentiments on the various sectors were generally bullish with the exception of Pharma which fell sharply by 0.54% while metals and private banks also closed marginally lower. The Advance decline ratio was 1.5:1 which is not as positive as the other numbers make it seem.

The Nifty closed above all the key daily moving averages. The GDP numbers that has come out today was not really good news and we have to watch if the bears use this opportunity to stifle the bullish sentiment.

India Vix 

The India Vix fell by 7.14% and it closed below all key moving averages except 100 indicating strongly bullish activity in the options market today. 


Stay Connected :


If you wish to participate in a discussion on this blog, please join the Facebook Group

If you wish to learn more about my approach to stock investments, check this blog out.
Remember, after all, Financial Freedom is a mindset first !!!

Thank you for reading the Blog and Stay Tuned in.

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.



Comments

Post a Comment

Popular posts from this blog

Investing Lessons from MOSL 23rd wealth creation study

Image
MY LEARNINGS FROM MOSL 23rd Wealth Creation Study Based on the Video (See link at the end)       LESSON 1 Buy only when the RoE is greater than the cost of capital. MOSL Assumes cost of capital to be 13%   My notes : The cost of capital for most companies can be assumed to be 12 to 15% based on their credit rating. The cost of capital for NBFCs could be 8 to 10% The cost of capital for Banks could be 6 to 8% Check the latest investor presentation or annual report to get this data. But a 13% filter on ROE will help to weed out most of the companies and provide you with a list of companies that is worth spending more time on. Some sectors like Infra have a RoE of less than 10%. So the big question is whether it is even worth looking at these for investment portfolio.    Lesson 2 Assuming the RoE test is passed and we have companies which we feel has a reasonable growth prospects (i.e. RoE > 13% or cost of capital) then it has the potentia
Read more

Daily and Weekly Nifty Chart Week ended 1st Sept.

Today, I have tried a vlog rather than the plain old simple blog. I have covered only the price action and the RSI in the video. Market breadth on Friday remained positive and Broad based indices and Sectoral Indices were also positive except for  Nifty IT which fell by 0.45%. It is too early in the expiry to check the Derivatives data. This week is likely to overshadowed by the geo political tensions as North Korea, Japan and USA are at loggerheads. Stay Connected : If you wish to participate in a discussion on this blog, please join the Facebook Group If you wish to learn more about my approach to stock investments , check this blog out . Remember, after all, Financial Freedom is a mindset first !!! Thank you for reading the Blog and Stay Tuned in. 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 t
Read more

Bank Nifty 10th Nov

Image
Commentary On Index: Date : 10th Nov Day Stats : A bullish day with a gain of 207 points.   Day: Up Day Candle pattern:   Bullish Candle after a neutral candle confirm trend reversal. Healthy long body with very small lower wick and  small upper wick i.e. opened near the low and closed near the high.  Range: Wide ... indicating demand exceeded supply Volume:  Improved from last two/three days and closer to average (though slightly below average) BANK NIFTY COMPONENT STRENGTH SCORE 10 NOV 17* Component Strength Score : 54.75 EMA : 55.13 Interpretation : Neutral/Sideways. Candle indicating gathering of bullish momentum. *ABOUT COMPONENT STRENGTH SCORE I am experimenting and developing a Component Strength Score based on the study of the underlying constituents of the Index itself. I have started with Bank Nifty. Here is a WIP version. The graph has three data points The movement of BN itself (absolute points), then there is a Component str
Read more