Nifty is now struggling 0 889

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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NIFTY VS 2019 GENERAL ELECTION 0 738

Nifty levels

Nifty analysis after BJP won the 2014 general election

  • Before 2014 Indian general election market consolidated for almost six months
  • In 2014 middle, BJP took 336 seats and formed a majority government.
  • Market celebrated BJP robust winning and it took Nifty to reach 9000 levels from 6000 levels.
  • 2015 was the period of decline in Nifty50 and global markets as well. Fall in petroleum prices, Greek debt default, sharp rise in US bond yields and Brexit bought stock market selloffs globally.
  • 2016 – 2017 shocking results of the Brexit referendum, the victory of Donald Trump in the US Election and Demonetization move by the Indian Government driven the market towards 10000 marks in the card.
  • 2018 was the year of consolidation. Driven by the Union budget of India and Global breakdown, rumors of Fraud by Housing Loan companies, Oil price Increase and rupee fall against US Dollar.
  • From 2018 Nifty consolidating between 11500 and 10000.
  • Especially last five months facing tough resistance around 11000 and taking crucial support from 10000.

Psychological levels

So for in Nifty 6000, 7000, 8000, 9000, 10000 and 11000 levels acting as a good psychological levels. Every thousand counts performing as a good support and resistance in the charts. On Friday, 8th March  2019, Nifty prices closed above 11000 psychological levels in the weekly scale. Even though most analysts believe that the market seems to be in an overbought zone still election 11000 marks will act as a crucial support and consolidation could be seen further or we can face higher level weakness.

Nifty levels

Nifty levels if the BJP win or out in the 2019 general election

Market wouldn’t care which party going to win in 2019 Indian general election. It may be BJP or Congress

  • With Majority wins – Rally towards 12000 levels
  • Without Majority win- Downwards to 9000 levels

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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