Nifty and Market Analysis @ EOD on 03 09 2019…..
And where is it heading tomorrow and this week (from 3rd Sept to 6 Sept 2019)?
On Sept 03, Nifty opened a gap down at 10,961 with a loss of almost 62 points and continued with selling pressure throughout the day pulling down the Index to 10,797.90. It made a net loss of 225.35 points during the day and made a large bearish candle on the daily chart. it also broke Fib 61,8% level, w.r.t. low of 26th August, which is placed at 10,806.
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Nifty is still in consolidation range surrounded with resistance at 10,806, (61.8% Fib Level, 10,961 (today’s opening), descending channel resistance shifted at 11,023, 11,053, 11,100 and 11,153 shifting its resistance level downwards. The trend line of the descending channel may push the market further down. To move up with velocity Nifty will need strong external cues for domestic and international markets. On the downside, it has support 10,750 (Support of 23rd Aug), 10,700, 10,637 and 10,582. The technical Trading range for Intraday is 10,700 to 10,961 as visible from the candlesticks chart. To resume it’s bullish move Nifty needs to cross and sustains above 11,150 on a closing basis until then Nifty may consolidate within this wide range of 10,650 to 11,100.
As per Option Chain data the trading range has moved downwards 10,700 to 11,050….with calls and puts being written at lower levels from previous sessions, thus shifting Support and Resistance levels downwards. Since the Option Chain range still remains broadened it may lead to volatility in the market.
PCR @EOD is at 0.584 which indicates a continued bearish outlook at present.
On the weekly front, the trading range is expanded further from 10,582 to 11,200 having multiple resistance and support levels. The domestic and global slowdown in businesses is some of the factors which will govern the market in the coming weeks. Auto sales, GST collection, economic growth are also declined in the past which is yet another ongoing concern in the market apart from Trade war between China and the US.
We trust the information provided will be helpful in your analysis of the market and make trading a profitable and better experience. The information has been shared for educational purposes. Please seek your financial adviser’s guidance before trading or investing.
Happy Trading and Keep Investing safely!
