NIFTY Daily and Weekly Analysis 18th Oct 2017.

Candle Stick Analysis

Daily


Since my last blog two trading sessions took place, including the session on Diwali day. Friday the market was closed.
  • After a good start to the week, the market saw selling pressure on Wednesday as well. 
  • The candle formation was Doji and located below the Tuesday's candle. This is an indication of the bearish pressure on the market.
  • The range for the day gives a clue to the attempts by the buying to push up the market and selling to push down the market during the day. 
  • The fact that the close was very near to the opening (less than 3 points above the open) and in the middle of the day's range indicates neutrality i.e. neither the bear nor the bull sentiment was able to establish itself on the market.
  • Being the weekly bank nifty expiry day, the volumes were higher than normal. 
  • The Diwali session saw a very large bearish candle.
  • Diwali is generally meant for symbolic purchases and the bears utilising this opportunity to push the prices down is an interesting tactic. 

Weekly

  • The weekly candle is a bearish candle located at the peak
  • The close near the lows indicates supply at higher price ranges
  • Though this is what the candle will indicate for all posterity the Thursday session was a Diwali session and therefore not a representative session. 
  • Even then, the market did see selling pressure on Tuesday and Wednesday, which was well absorbed by the buying to ensure that the index stayed at the top. The Thursday session witnessed some bearish action. 
  • However, considering this was not a full day session, Monday's session will provide the concrete information if the market has indeed turned bearish.

Trend and Momentum Analysis

  • The Nifty is trading above all key moving averages, on both Daily and Weekly charts
  • The RSI reading for Nifty is bullish on both Daily and weekly basis. 

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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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