Nifty Daily Update Oct 9th 2017

BIG PICTURE OCT 19th


Nifty traded in a narrow range of about 56 points, predominantly above Friday's closing. It managed to gain 9 points to close at 9988.75.

The broader market indices were green except for midcap 100 which marginally fell by 0.02%. The sectoral indices also ended in green except for Auto and PSU Banks which saw marginal losses of 0.01% and 0.04%. The advance decline ratio was positive at 1.3 to 1 advances to declines. While 107 stocks hit 52 week high mark today, 35 stocks hit 52 week low i.e. a score of 75%.  


CANDLE STICK ANALYSIS

  • After a bullish week last week when Nifty quietly gained about 2% the doji formation at the top of this rally indicates indecisiveness in the market sentiment. 
  • The market opened at 9988.20 and closed at 9988.75 ... a perfect doji opening and closing at 9988
  • It traded above the previous close most of the time and high of the day was 10015.75 and low 9959.45 i.e. a range of 56.3 
  • The location at the top of the current rally and the long range above and below the very small real body makes this doji a potent signal for reversal.

TREND ANALYSIS

  • Nifty took support at the 100 day Simple Moving average last week. And on Friday it has crossed the 50 Day Simple Moving Average.
  • Today's close was above the 20, 50 and 100 Day SMA and  therefore can be considered bullish. 
  • The immediate support is the 20 Day SMA of 9977 and the psychological level of 9950.
  • Any break of 9977 and 9950 would bring back the weakness into the market
  • With the earnings season beginning, the first few results is likely to influence the Nifty direction. 

INDIA VIX AND NIFTY OPTIONS DATA 

  • India Vix gained 2.47% indicating bearish activity in the options market
  • The Put Call Ratio for Nifty Oct Series is at 1.13 indicating normal level of activity
  • The trading volumes for Calls stood at 700K and for Puts at 757K 
  • Strike Price of 9800 and 10000 are forming the support and resistance based on max OI outstanding for the Oct Series.

OUTLOOK FOR 10th Oct

Nifty Range for 10th Oct is 9963 to 10046 with support at 9944 and resistance at 10104
Bank Nifty Range for 10th Oct is 24174 to 24341 with support at 24000 and resistance at 24462

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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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