Nifty Daily Update 25th Sept 2017. Friday blues continues on Monday.

BIG PICTURE SEPT 25th

Another morning attack by the bears and it seemed like bulls have fled the field.  Only post 2 PM the Nifty witnessed some buying (probably short covering by day and positional traders) which helped it to recover some ground before closing.

Nifty opened slightly below the Friday close, and with another day of Open(9960.10) = High (9960.50), traders shorting the market sent it tumbling to a low of 9816.05 breaking multiple supports. The Nifty closed at 9872.60 down by 92 points from Friday's close.

All broad based and sectoral Indices closed in red. Small caps lost 2.34% while among the sectors, Realty took a big beating for a second consecutive day. The advance decline ratio was slightly better than Friday 1:4.5 with negative bias. The day's trading saw 21 securities reach 52 week high while 62 securities tumbled to their 52 week low, clearly indicating the change in market sentiment.

The Index is now trading below the short and medium term daily moving average (5,10,20 and 50) and above the 100 day SMA at 9758 which is the next support.


CANDLE STICK ANALYSIS

  • A bearish candle opening below the Friday close with no upper shadow (shaven top) and a lower shadow of 57 points. 
  • The range for the day was 145 indicating the high level of volatility in the market.
  • The close midway of the range is a minor relief for the bulls even if it was because of short covering.
  • The Index found support at 9816 levels while the next supports are at 9750 and 9690 levels.

INDIA VIX AND NIFTY OPTIONS DATA 

  • As the Expiry approaches the PCR ratio is skewing towards the Calls and stood at 0.80 almost half of the peak last week of 1.50
  • The traded volumes were similar with 2.34 millions puts and 2.39 million calls getting traded. 
  • The support and resistance strike price has clearly moved down to 9700 and 10000 respectively.
  • A combined short buildup of 6.46 million units on the call side at strike prices 9900,9950 and 10000 indicates high bearish sentiment. 
  • 2.8 million ITM puts from 10K to 9900 levels were unwound and 1.3 million long positions being taken at 9750, 9800 and 9850 levels. This also indicates bearish bias. 
  • The India Vix rose by 4.14% with a range of 2.34 points indicating hectic market activity as option writers shifted from Put side to call side. 


OUTLOOK FOR Sept 26th

Sept 26th Nifty Range 9790 to 9920 with support at 9750 levels and resistance at 9950 level.
Sept 26th Bank Nifty Range 24077 to 24446 with support at 23814 and resistance at 24553

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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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