Nifty and Market Analysis @ EOD on 05 09 2019…..
And where is it heading this weekend on 06 Sept 2019?
On Sept 05, Nifty opened a gap up at 10,860.95 with a net gain of almost 15 points and Closed at 10,840.70 making a net gain of 3.05 points during the day. It made a small body Spinning tOp Doji thus indicating indecisive. But the price closed well above Fib 61.8% level, w.r.t. low of 23rd August, which is placed at 10,806.18. Today’s closing is above daily Pivot at 10,816.58 but below Weekly Pivot at 10,973.85. Nifty cound not enter the Ascending Channel although the price breached the level but did not sustain above 10,870. The bearish outlook is still stronger on the chart on the technical front.
Consolidation of Nifty continues before any large move for which Bollinger bands have started squeezing for quite some time now. Nifty Index is surrounded with resistance at 10,855 (closing of 7th Aug), 10,900 (opening of 8th Aug), 10,961 (yesterday’s opening), descending channel resistance shifted at 11,000. 11,023, 11,053 (50% Fib Level) and 11,100 shifting its resistance level downwards. The trend line of the descending channel may push the market further down as time goes by. To move up with velocity Nifty will need strong external cues for domestic and international markets.
On the downside, it has support 10,806 (61% Fib wrt 26 Oct 2018), 10,746 (today’s Low), 10,700 (Support of 23rd Aug), 10,637 and 10,582. To resume its 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 squeezed and moved downwards 10,800 to 11,000….with calls and puts being written at lower levels from previous sessions, thus shifting Support and Resistance levels downwards. Since the Option Chain range remains broadened it may lead to volatility in the market on the weekend i.e. 6th Sept 2019 with selling pressure.
PCR @EOD (for Nifty Expiry on 5 Sept OC) is at 0.86 which indicates a mild bearish outlook at present.
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.
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