Nifty Daily Update 1 Nov 2017. Nifty Spring Boards to 10440 level

Big Picture 1 Nov 2017

When a person jumps on a trampoline, the trampoline first takes him down a little and then pushes him to higher. Nifty behaved exactly like that today. After a loss of 28 points, taking care of all bearish sentiments, the Nifty opened gap up and then stayed above the open for most of the time. It closed at a record high level of 10440. The high of the day was 10451.65, a new peak.

The broad market indices were all positive with Nifty 100 being the top gainer. PSU banks and Realty were the new favourites and top gainers for the day.  Media, Pharma and IT ended in red while Auto marginally closed lower.

The advance decline ratio was positive at 1.21 while the 52W HiLO Score was 92.05% (versus an 13 EMA of 83.19). This indicates positive bullish sentiment in the market.

Candle Stick Analysis


  • Nifty formed a Bullish Candle.
    • An small lower wick and a small upper wick the absence of selling pressure was evident.
    • A gap up opening and a close near the high of the day is evidence of the Bullish sentiment having its way finally.
  • Volumes were normal
  • I had given the following comments in my blog yesterday.
    • 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.
  • Gap Up Openings are a way for the Bulls to overcome resistance. The above chart shows 3 instances (including today) where Gap Up openings were used successfully to continue the rally. A good 20+ point gap up also now provides a good support window at 10400 levels. 
    •  

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 bullish with a loss of 2.49% to close at  12.13. 
  • The Put Call Ratio for November expiry has further turned bearish at 1.35  
  • The trading Put Call Volume stood at 1.18 which indicates high activity on the put side.  
  • 10000 and 10500 are the support and resistance strike price based on OI data.
  • The resistance has moved from 10400 to 10500 on the back of the rally today.
  • The max pain level has moved from 10200 to 10300.
  • 10400 saw a massive short build up of more than 1.12 puts (Bullish)
  • 10600 Call strike saw some short covering to the tune of 0.26 million (Bullish).

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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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