Nifty Daily Update 12 Oct 2017. Weekly Expiry prompts Bulls out of the closet

Big Picture Oct 12th

Cheer was back in the market, as the weekly expiry seems to have brought the Bulls out of the closet. With the sellers out of the way in yesterday's session, today the market easily advanced above the estimated range all the way up to the resistance (as given in my blog yesterday).  The market range was 9977 to 10105 very close to the range estimated yesterday.

Nifty gained 111.60 points to close at 10096.40.All broad market indices closed in green with mid cap gaining slightly more than the rest.  PSU Banks continued to loose while all other sectors closed in green. Metals, Realty and Pharma were top gainers. The advance decline ratio was a healthy 2.02 (versus yesterday's dismal 0.44) and the 52w HiLo fared lower at 69% (84% yesterday).



Candle Stick Analysis

  • Today was a piercing Strongly Bullish candle. 
  • The range was 127 nice and wide well above the average range of 98.40. The real body was an healthy 85 points a nice 66% of the day's range. In short a strong come back by the Bulls after shaking out the sellers yesterday.
  • The Expiry would have provided the needed motivation. 
  • It closed 111 points above yesterday's close and the high of the day also broke the 10100 mark for a brief period. 
  • It closed near to the high of day.
  • A follow up day tomorrow and Monday will confirm the return of the bullish sentiment.

Trend and Momentum Analysis

  • The Index is now nicely above all key moving averages indicating improved resiliency and strength
  • The RSI now is marginally above 60 indicating stronger momentum and return of bullish sentiment from the neutral to bullish sentiment yesterday.

India Vix and Nifty Options Data Oct series

  • India Vix dropped by 5.86% as bulls took charge and put an end to the bearish activity here.
  • The day saw good volumes with 1.11 million puts exchanging hands while 898K calls getting traded. 
  • The PCR stood at 1.24 indicating a return of bullish sentiment to the options market. 
  • There was a huge amount of short covering on the calls side with the 10K strike price seeing close to 1.25 million calls getting unwound. A similar quantum of new puts were written on the 10K Strike price. 
  • This activity has resulted in a very interesting situation. The strike price of 10000 is now both the support and resistance based on maximum OI outstanding. 

Outlook for next trading session

Nifty range for 13th Oct is 10040 to 10152 with support at 9997 and resistance at 10200
Bank Nifty range for 13th Oct is 24182 to 24589 with support at 23904 and resistance at 24717


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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.

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