Nifty Daily Update 31 Oct 2017. 10300 crucial level to watch.

Big Picture Oct 30th

Nifty recorded a 28 points loss to close at 10335.30.  The index opened bearish and continued to remain bearish the entire trading session. There was some buying between 11 AM and 1 PM which took the Index near to the prior day close but selling resumed post 1 PM and finally some short covering towards the close of the market helping the index to recover from 10330 to 10340. Finally it closed at 10335.3.

The broad market indices were mixed bag with small caps and midcap gaining during the trading session while the Nifty 50,100 and 200 ending up with losses.  Among the sectors, Realty was a top gainer for a second day in a row while PSU Banks and Metals were top two losers.  Marginal gainers were Bank Nifty, Fin Services, FMCG, Pharma and Private Banks. Marginal losers were Auto, IT and Media.

The advance decline ratio was positive at 1.04 while the 52W HiLO Score was 89.60% (versus an EMA of 81.75). This indicates underlying bullish sentiment though many key indices ended in red.

Candle Stick Analysis


  • Nifty formed Bearish Candle.
    • An invisible upper wick and a small lower wick indicated abundance of selling pressure pulling the Index down
    • Open=High and a close near the low has created a highly bearish candle.
  • Volumes were above average.
  • The neutral candle at the peak with two bearish candle on either side is a strong indication retracement.
  • However the narrow range for the day and a close above the prior low of 10311 still provides a relief to the bulls. 
  • The bulls will have to defend 10311 or broadly 10300 levels in the next trading session for the rally to continue. Any close below 10311 could encourage bearish operators to launch another attack.
    •  

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 bearish with a gain of 2.76% to close at  12.44. Vix has gained 8.26% in the last two days.
  • The Put Call Ratio for November expiry is turning bearish at 1.26  
  • The trading Put Call Volume stood at 1.04 which indicates nearly equal volumes on for calls and puts (Neutral)  
  • 10000 and 10400 continues to be the support and resistance strike price based on OI data.

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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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