Nifty Daily Update 17th Oct 17. Intense battle on the peak

Big Picture Oct 17th

The first couple of hours belonged to the bears as the Nifty moved below yesterday's close. By 10:40 AM, the bulls were able to push the Index into the green. Around noon the bears were back in the game pushing the index down again. Post 2 PM Bulls absorbed the supply and managed to keep the Nifty in the green to finally close just 3.6 points above yesterday's close.

The Bulls spread their buying across the market to ensure all the broad based market indices closed in green. The sectoral indices was a mixed bag with Realty being the top gainer and Media the top loser. 6 of the 11 sectors ended in red.

The market breadth was at 1.01 indicating neutral sentiment while 52W HiLo Score stood at 78.9% versus 72.12% yesterday. The high of the day and the close for the day were at life time high levels. The new Nifty peak stands at 10252 9 points above 10243.

Candle Stick Analysis


  • A spinning top at the peak with normal volumes indicates the fierce battle between the Bulls and the Bears at the summit.
  • This neutral candle at the top indicates uncertainty. 
  • The small body and presence of the upper and lower wicks (of similar proportions) make this a spinning top. 
  • The narrow range indicates evenly matched camps.
  • The close at the mid of the candle and in green shows that the supply was absorbed as the index levels were maintained and not allowed to slip.
  • Further course will be determined by the supply level or lack of it.  

Trend and Momentum Analysis

  • Both moving averages and RSI readings are bullish.

India Vix and Nifty Options Data

  • The India Vix rose for the 3rd day in succession and closed at 11.61 up by 2.63%
  • The PC Ratio stood at 1.67 which is like an oversold level for options market.
  • The PC Volume stood at 0.97 indicating slightly higher volumes on the call side.
  • 10,000 and 10,200 strike prices continue to be the support and resistance strike price based on OI.
  • Short build up was seen on both call and put side for strikes between 10200 to 10300 indicating the shifting battleground.


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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.

Comments

  1. Richard17 October 2017 at 08:54

    Momentum Is Rising Around The World For 9 Major Global Equity Averages

    https://www.forbes.com/sites/investor/2017/10/16/momentum-is-rising-around-the-world-for-9-major-global-equity-averages/#4fb5236911f4

    ReplyDelete

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