Nifty Daily Update Sept 13th 2017. Top Slip: Bulls slip near the Summit.

Market Sept 13th

In my blog on Sunday, I had written that swift movement of the Index needs to be viewed with caution. Nifty had two bullish sessions on Monday and Tuesday, and a very good session during most of the day today. But as I said, haste makes waste. All the euphoria came to naught as the momentum was not strong enough for Nifty to reach the peak let alone break out into a new all time high. A brief look at the story the data provides.

• The Nifty range was 10063.15 to 10131.95 and the huge selling pressure at higher levels brought the Index down below the opening level of 10099.
• This has created a bearish candle (as the close was lower than the open).
• The body of the candle is near the low indicating that the bears won the day in a very convincing manner. 
• The Bears managed to drag the bulls from touching distance of the peak of 10137.85  to a place lower than where they started the day.
• The narrow range of the candle body, the bearish formation, the location of the candle all indicate this is a single candle reversal pattern. 
• Tomorrow session will decide if this pattern will convert into a double top pattern, which could trigger a correction of at 500 points. The location of this candle is at the peak of this particular upmove and at similar level to the life time high of Nifty in Aug.
• Finally there was above average turnover 10682.90 crores.

All the broad based indices ended in the red in today's trading. The Sectoral indices presented a mixed bag with Pharma and PSU Banks being top gainers while Realty, Metals and FMCG were top losers. The advance decline ratio was 1:2 with more declines in the trading session. 95 scrips reached 52 week high today while 15 scrips reached 52 week low.

India Vix and Options Data 

The India Vix ended in flat note, losing about 0.02%. It is still below all key moving averages indicating bullish sentiment in the options market. The trading volume for puts and calls were almost 1:1 with 839K calls and 894K puts traded in today's session. The overall PCR is 1.33 indicating a overselling of puts (and therefore reversal likely). 9900 and 10200 are the two strike prices with highest OI providing the support and resistance respectively.

Outlook for Sept 14th

Nifty Range for Sept 14th is 10008 to 10127 with support at 9988 and resistance at 10147.
Bank Nifty Range for Sept 14th is 24700 to 24928 with support at 24593 and resistance at 25036.

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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.