Nifty Daily Update 06 Nov 17. Deuce despite another all time high

Big Picture 06 Nov 2017

In tennis, when both players are at equal score of 40 all, it is called deuce and then the first player to win two consecutive points wins that game.

Nifty closed level to the Friday closing. While Nifty opened lower, buying was witnessed during the day helping the Nifty to close at 10451.80 almost same as Friday's close. The bears failed to sustain the lower levels and the bulls failed to sustain the higher levels but managed to close mid way. So, in a way, the Bulls managed to draw (in tennis parlance) the session today after being down.

The day witnessed a new life time high of 10490.45.  The broad market indices (except Nifty) were positive with Nifty Next 50 being the top gainer. Auto and PSU banks lead the sectoral indices while  Private Banks, Bank Nifty and Fin Services all ended in red. Pharma was the only other loser.

The advance decline ratio was neutral at 0.97  while the 52W HiLO Score was 87.76% (versus an 13 EMA of 88.19). This indicates positive bullish sentiment in the market.

Candle Stick Analysis


  • Nifty formed a Bullish Candle.
    • An small lower wick, a large upper wick and close mid way shows failed attempts by the bears to pull the index down and of the bulls to get the index up.
  • Volumes were low
  • The high of the day was also a life time high for Nifty.
  • In summary it is a neutral candle pattern indicating continued indecisiveness in the market. 

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 loss of 9.34% to close at  13.0225. 
  • The Put Call Ratio for November expiry remains bearish at 1.42  
  • The trading Put Call Volume stood at 1 which indicates equal activity on the call and put sides. 
  • 10000 and 10500 are the support and resistance strike price based on OI data.
  • The max pain level continues to be at 10300.
  • 10500 strike price saw a long build up on both call and put side of about 230-240K units.
  • The bearish close of India Vix and the build up of OI indicates a battle for the 10500 levels this week.

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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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