Nifty likely to trade with limited upside 0 656

Pre Market Updates Tuesday February 19, 2019
Nifty levels

Positive Points:

  • DIIs have bought for Rs 2337 crores.

Negative Points:

  • US oil prices hit a three-month high on Tuesday
  • India VIX witnessed a sharp spike and ended 10.4% higher at 18.17. Sudden upside in the VIX restricts immediate upside in the near term.

Outlook:

  • Looks like market participants have turned cautious ahead of the general election, the rise in crude oil prices, developments around Brexit deal, movement of rupee against the US dollar and geopolitical concerns.
  • More than 300 stocks on the NSE hit a fresh 52-week low
  • More than 500 stocks on the BSE hit a fresh 52-week low
  • Nifty likely to trade with limited upside
  • Problem will be only when Nifty falls below 10550.If these levels are broken, then Nifty is likely to revisit 10000.
  • Nifty likely to face resistance at 10760 and support at 10620.

Simple Moving Averages:

  • 50 days SMA: 10816
  • 150 days SMA: 10909
  • 200 days SMA: 10860

Nifty Chart Formations:  Candlestick and Patterns

Candlestick:  Bearish candle

  • Nifty forms bearish candle for the 8th day in a row.
  • This candlestick implies relatively strong selling pressure, and shows that prices declined during the day significantly from open to close and the sellers were aggressive.

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 0.95
  • Nifty Bank PCR at 1.31.

Max O.I Strikes

  • Nifty: 10600 PE and 10800 CE
  • Bank Nifty: 26000 PE and 2700 CE

FII & DII Net Purchase / Sales

  • FII: -1,239.79 CR
  • DII: 2,336.74 CR

F&O Stocks under Ban: 8 securities under F&O ban

  • ADANIENT
  • CGPOWER
  • IDBI
  • JETAIRWAYS
  • JISLJALEQS
  • PCJEWELLER
  • RELINFRA
  • RPOWER

FnO Earnings

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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