Nifty is now struggling 0 847

Pre Market Updates Wednesday February 20, 2019
Nifty levels

Positive Points:

  • FIIs created bullish positions in the derivative segment which, they created 5,051 long contracts in the Index Futures while simultaneously reducing 6,737 short contracts.
  • Positive progress on China-US trade talks in Washington may boost sentiments.

Negative Points:

  • Oil has rallied 23% this year with OPEC and allies cutting output.
  • Crude oil price and rupee vs USD, both of which are unfavorable for the economy currently.

Outlook:

  • NIFTY is trending down for 8 days or in other words, it daily closing at a lower price than previous day’s close.
  • Nifty is now struggling on Tuesday; Nifty looked like a positive session after seven days of losses but, witnessed selling pressure during closing hours, marking the count of losses to nine days.
  • Nifty50 registered its biggest losing streak since 2015 as it dropped for the eight consecutive days in a row, but managed to close a shade above 10,600 levels.
  • The last time when Nifty50 fell consecutive for 8 straight days was back in March 2015 when the index was trading around 8,600 levels.
  • This came in even as local mutual fund flows get stronger & markets heavily oversold.
  • Foreign investors continue to sell keeping in mind the geopolitics & the risk of retaliation by India against Pakistan.
  • Nifty likely to face resistance at 10720 and support at 10580.

Simple Moving Averages:

  • 50 days SMA: 10818
  • 150 days SMA: 10909
  • 200 days SMA: 10860

Nifty Chart Formations:  Candlestick and Patterns

Candlestick:  Inverter Hammer

  • Nifty formed Inverted hammer on daily scale this shows evidence that the bulls are stepping in, but the selling is still going on.

Patterns:  Ending Diagonal Pattern

  • Nifty index breached lower end of the multi week Ending Diagonal pattern on closing basis
  • Losing momentum to the downside, when prices finally turn bullish, it can be a swift correction to the upside.
  • This wave often occurs when the preceding move of the trend has gone too far, too fast and has run out of steam.
  • In all cases, they are found at the end of the higher degree motive or corrective wave.
  • This wave pattern indicates the termination of the previous trend of one higher degree.

Options Data Tracking

Max Pain

  • Nifty max pain level currently at 10800
  • Bank Nifty max pain level currently at 26800

Put Call Ratio

  • Nifty PCR at 0.92
  • Nifty Bank PCR at 1.24.

Max O.I Strikes

  • Nifty: 10600 PE and 10800 CE
  • Bank Nifty: 26500 PE and 2700 CE

FII & DII Net Purchase / Sales

  • FII: -813.76 CR
  • DII: 1,163.85 CR

F&O Stocks under Ban: 6 securities under F&O ban

  • ADANIENT
  • IDBI
  • JETAIRWAYS
  • PCJEWELLER
  • RELINFRA
  • RPOWER

Disclaimer: The views expressed by investment expert on rollnreel.com are his own and data available from nseindia.com. Rollnreel.com advises users to check with certified experts before taking any investment decisions.

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Formation of Nifty50 is in downtrend 0 542

Pre Market Updates Monday February 18, 2019
Nifty levels

Outlook:

  • Now a days, due to over open positions I can’t write pre-market updates on time. From March I will schedule to post daily article before 8.00am.
  • RBI board meeting, GST Council meet, US-China trade talks, crude oil prices, movement of rupee against the US dollar and the last leg of corporate earnings are among the major events that market may take cues from this week.
  • Nifty50 traded continuously in negative candles for seven sessions.
  • On Friday, recovery around the closing session shows buyers gaining the momentum.
  • And also, If markets move above 10800, again shorts may like to enter the system.
  • Nifty likely to trade within Friday range.
  • Friday high and low points may act as a immediate range for Nifty which falls around at 10620-10780.
  • Huge open positions were added in both OTM call and put option strikes along with a rise in implied volatility, indicating a possibility of a continued volatile scenario for the index going forward.
  • Nifty likely to face resistance at 10780 and support at 10620.

Simple Moving Averages:

  • 50 days SMA: 10817
  • 150 days SMA: 10911
  • 200 days SMA: 10860

Nifty Chart Formations:  Candlestick and Patterns

Candlestick:  Hammer candle

  • Nifty50 formed Hammer candle on the daily charts
  • Trend reversal patterns
  • The bears have lost control.
  • It reflecting smart buying in the lower levels.

Patterns:  

  • Formation of Nifty50 is in downtrend.

Options Data Tracking

Max Pain

  • Nifty max pain level currently at 10700
  • Bank Nifty max pain level currently at 27000

Put Call Ratio

  • Nifty PCR at 1.01
  • Nifty Bank PCR at 1.31.

Max O.I Strikes

  • Nifty: 10600 PE and 10800 CE
  • Bank Nifty: 26500 PE and 26900 CE

FII & DII Net Purchase / Sales

  • FII: -966.43 CR
  • DII: 853.25 CR

F&O Stocks under Ban: 7 securities under F&O ban

  • ADANIENT
  • CGPower
  • JETAIRWAYS
  • JISLJALEQS
  • PCJEWELLER
  • RPOWER

FnO Earnings

  • ENGINERSIN
  • AMBUJACEM

Disclaimer: The views expressed by investment expert on rollnreel.com are his own and data available from nseindia.com. Rollnreel.com advises users to check with certified experts before taking any investment decisions.

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