Nifty Daily Update 26 Oct 2017. Nifty scales new peak

Big Picture Oct 26th

A strong show by Bulls on the Expiry Day reaching record highs. Nifty gained 48.45 points to close at 10343.80.   As per the analysis of the options data in my blog yesterday, an expiry above 10250 was anticipated. With supply exhausted, the Bulls were able to push the index to further highs. This augurs well for the Bulls.

The broad market indices were all green with midcap and small caps gaining the most in session today. Among the sectors, Metals gained 2.05% to lead the Index to the new high on closing basis.
The star performer yesterday i.e. PSU Banks declined on profit booking. IT continued the losing streak while BankNifty ended slightly lower. Pharma recovered.

The advance decline ratio was positive at 1.16 while the 52W HiLO Score was 82.65% (versus 77.08% yesterday). The above indicates wider participation in the rally.

Candle Stick Analysis


  • Nifty formed a two candle pattern of Bullish Engulfing.
    • The body of the current candle engulfed the body of the prior day candle.
    • Close was above open i.e. Green Candle 
    • Upper and Lower Wick was small indicating dominance of demand
  • Volumes were higher probably owing to the Expiry Day.
  • The Nifty reached a new peak with the Day's high of 10355.65 which was higher by around 15 points from the previous day's high (and new peak)
  • The close was very bullish above the previous high and close to the day's high. 
  • The close is a lifetime high close, a strongly bullish message to the bears.
  • With expiry out of the way, the Nifty has to sustain this rally in the November cycle. 

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 1.21% to close at  11.61
  • The Put Call Ratio for November expiry was neutral at 1.13 
  • The trading Put Call Volume stood at 1.06 which again is neutral. 
  • The Options data analysis in my blog yesterday gave advance information about the strong Expiry.

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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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