Nifty Daily Update 18th Sept 2017. Flying start to the week

Market Sept 18th

Well, literally a flying start to the week. Nifty opened gap up, above the high of the previous week and never looked down.  The expected selling did happen in the second half but the sentiment could not be changed. 

All broad based indices closed in green and all sectoral indices closed in green except for PSU Banks which lost 0.23% with SBI losing  0.55%. Advance decline ratio was positive and 125 stocks reached their 52w high and 21 stocks reached 52 w low in the day's trading.

Daily Candle :

  • Nifty opened at 10133.10, and reached a life time high of 10171.70 made a low of 10131.10 and closed above 10150 at 10153.10.
  • This resulted in a bullish candle gap up (above all the 5 candles of last week).
  • The bears were taken by complete surprise with this jump and sprint by the bulls to stay out of the resistance zone of 10130-10140.
  • The bulls cleverly kept the day's range restricted to 40 points. This meant that it did not attract much profit booking (other than by day traders) or was attractive enough for bears to add short positions.
  • The sales pressure towards the end of the day was weak and Nifty managed to close above the key 10150 mark.
  • The overall volumes were lesser than on Friday.
Note: Chart taken from an alternative site as my regular site is showing incorrect data  



India Vix and Options Data 

The India Vix fell by 2% and is trading below all key moving averages indicating bullishness in the market. The last two day's activity  in the options market is giving contradictor signals i.e. lower close (bullish) but with green candles (given inverse co-relation indicates bearish activity).

The PCR ratio is now really heated up at 1.51 and the trading volume stood at 1 million puts versus 790K calls traded. 10000 and 10200 have become the support and resistance strike prices based on maximum OI outstanding at the end of the day. In terms of OI Change, there is a huge short build up at 10150 and 10200 Put Strikes with more than 1 million change in OI in each strike price. Long unwinding was seen in Put strikes below 9950. On the call side half million addition seen at 10200 strike price while 400K addition seen in 10250 and 10300 strike prices. Short covering seen in strike prices below 10150.

Outlook for Sept 19th

 Nifty Range for Sep 19 10082 to 10192 with support at 10050 level.
Bank Nifty Range for Sep 19 24849 to 24198 with support at 24781.

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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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