Nifty Daily Update 20 Sept 2017. High Sling Rope Walking by Bulls

Big Picture Sept 20th 

Nifty lost another 6.4 points in a flat trading session to close at 10141.15. All broad based indices closed red today. PSU Bank, Pharma and FMCG gained while all other sectors closed lower today. Advance decline ratio was close to 1 with negative bias. Only 88 securities reached 52 week high today versus 10 securities reached 52 week low. 

The series of red candles after a gap up bullish candle achieving Lifetime high on Monday, is like a high rope walk by the bulls. The trading range has been narrow and the lower close seems like the rope is flexible yet giving good support to the weight of the bulls. And this formation at the top of the chart ... like a sling rope walk into nothingness and bulls praying for the staircase of bullish candles to appear. 

Candle Stick Analysis

  • Nifty closed ~27 points lower than the opening forming a bearish candle 
  • The candle barely had small lower and upper shadow.
  • The candle revealed the bearish grip on the trading day, as bulls were unable to push the price slightly higher than the open and bears managed to push it to close near the low of the day.
  • However, Bulls managed to close above the key support levels and the gap (or window, as the Japanese say) is not yet closed. 
  • The narrow range in the trading session indicating bulls were probably consolidating as weaker players unwind their positions.
  • Volumes were similar to prior day volume.
  • All key moving averages and indicators are bullish



India Vix and Options Data 

The India Vix gained 1.46% indicating bearish sentiment in the options market. The Vix seems to have bottomed out as the daily candle forming an hammer at the bottom. The PCR ratio for Nifty continued above 1.50.  While above 621K puts were traded and 532K calls were traded. 

10000-10200 continue to be the strike prices providing support and resistance based on maximum OI outstanding. Gradual Short buildup at 9950 and 9900 Put Strikes indicates movement of support to lower strike prices. Short buildup  at 10150 calls and above indicates movement of resistance to 10150 from 10200. The range is getting narrower between 10000 and 10150 as expiry date is nearing.

Outlook for Sept 21st

21st Sept Nifty Range between 10102 and 10200 with support at 10074 and resistance at 10221
21st Sept Bank Nifty Range between 24875 and 25155 with support at 24785 and resistance at 25208

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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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