Nifty Daily and Weekly Update. 27 Oct 2017

Big Picture Oct 27th

A failed attempt to close at another life time high. The market opened near the high of the day and traded generally in the green (above prior day close). However, the bears unleashed an evening attack and hammered the Index in the last one hour. Consequently the Index lost 20 points.

While the index created a new life time high, the evening attack meant that it failed to create a life high on a closing basis. The broad market indices was neutral to negative as most indices closed in the red. Mid cap 100 closed with zero gains while small cap and next 50 gained. PSU Banks lead the loss making sectoral indices followed by Bank Nifty. Pharma and Media were top two gainers.

The advance decline ratio was positive at 1.09 while the HiLo Score was also positive at 84.35% versus a 13 day average of 78.93%.

Candle Stick Analysis

Daily


  • The daily candle was a bearish piercing candle.
    • The body of the current candle pierced the body of the prior day candle.
    • Close was below open i.e. Red Candle 
    • Upper and Lower Wick was small indicating dominance of supply.
  • Volumes were higher.
  • The Nifty reached a new peak with the Day's high of 10366.15 which was higher by around 10 points from the previous day's high (and new peak)
  • The close was very bearish and close to the day's low. 
  • The follow up to the life time high with a bearish piercing candle indicates that bulls will continue to be challenged.

Weekly 


  • The weekly candle has formed a bullish engulfing pattern.
  • The low of the last two candles are very similar 10124 and 10123. 
  • A bullish candle following a spinning top on higher volumes indicates a resumption of bull rally.

Trend and Momentum Analysis

  • The above chart now has key moving averages plotted as well as the RSI reading.
  • The Index is comfortably above the key moving averages
  • The RSI reading is bullish.

India Vix and Nifty Options Data

  • India Vix closed neutral with a loss of 1.23% to close at  11.4750
  • The Put Call Ratio for November expiry was neutral at 1.11
  • The trading Put Call Volume stood at 0.98  which again is neutral. 
  • 10,000 and 10,500 are the support and resistance strike price as per Nov expiry options Outstanding Interest. 

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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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