Nifty Daily Update Sept 14 2017.


Market Sept 14th

Another great arm wrestling match today. Till 11 the Bulls made merry. Past 11 to past 2 pm a big tussle ensued between supply and demand pushing the index below yesterday's close and finally the Bulls won the round managing to close 7.3 points above yesterday at 10086.60. See the details in the graph below.


The market breadth for Nifty was negative with 28 declines versus 23 advances. All broadbased indices closed in the green today. Among the sectoral indices, Pharma gained a massive 2.63% today outperforming every sector by a huge margin, while Metals and Realty were top losers. 

The advance decline ratio was almost 1:1 indicating a more neutral market breadth compared to Nifty. 53 securities reached 52 week high today including the likes of HDFC Bank, Hindustan Lever etc. 15 scrips reached 52 week lows. 

Candle Stick Analysis

  • The Candle stick formation today was a bearish candle
    • though the index close above yesterday's close but it closed below the opening price, indicating the bears had their way.
  • It was a small range candle with a range of  56 points
  • The body was 20 points indicating a close fight between the bulls and bears.
  • Two successive small range red candles near the resistance zone indicates extended indecisiveness of the market regarding the next up move
  • The momentum and moving averages and the general trend is in favour of the bulls with bears trying their best to sabotage the attempt to create new highs.
  • The battle will continue tomorrow and probably into the next week as Nifty has to decisively break 10150 and sustain above that level as a confirmation of trend continuation.




India Vix and Options Data

The India Vix closed another 2.42% lower than yesterday and below all key moving averages, indicating bullishness of the overall sentiment. However the candle stick analysis of India Vix indicated a very bullish start by opening gap down, and it was a Open=Low day for the Vix. The candle pattern yesterday was a doji and today's strong bear candle is starting to tell a story. This could be an early warning signal from the Vix about a potential reversal.




In the Nifty options trading 891K Puts were traded versus 771K calls. The PCR ratio of the OI continues to be above 1.43 indicating overbought zone. While 9900 and 10200 remain the support and resistance from a options strike price data, it is interesting to note that there is a long build up in 10200 Call and long unwinding of 9900 PE. There has been a short build up at 10000 Strike price with an increase in OI of more than half a million units. This means that the support is shifting slowly to 10000 from 9900 while the resistance is slowly moving towards 10400 - where 100 thousand OI short build up was seen.

Market Range Estimate Sept 15th  

In my blog yesterday, Nifty's day's high was predicted perfectly ... of course this gives great happiness, but repeating this kind of estimates would depend on Mr Market entirely. 

Nifty Range for Sept 15th 10044 to 10158 with support at 10020 and resistance at 10182.
Bank Nifty Range for Sept 15th 24726 to 25048 with support at 24626 and reistance at 25150


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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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