Nifty opened the week at 9755.75, made a high of 9947.8, low of 9752.1 and closed the week at 9837.4 with a gain of 126 points (1.3%)
Last week we discussed “……. For bulls protecting Friday’s low of 9685.55 is crucial. If the index recovers above the channel's support line and the 50 EMA, the bulls might be back in action. If Nifty broken Friday’s low decisively, further correction can be expected……...” Nifty managed to protect Friday’s low and gained 262 points which is 58% retracement to 452 point fall from 2nd August to 11th August.
On Daily chart, Friday, Nifty made a gap down candle and made first lower high and lower low after 3 days rally. Action formed a Black Opening Marubozu type candle. So protecting previous Friday’s low (9685.55) and protecting 50 day moving average are crucial for bulls to move up. Thursday’s high of 9947.8 is a near term strong resistance. Below 9685.55 more weakness can expect.
Options data for August series indicate highest Call Open Interest at the strike of 10000 and highest Put build-up shifted to 9800 from 9500. There is a huge unwinding seen at 9900 PE.
Global financial markets are closed in negative. Volatility returned to US market.
In last week, FII were sellers and DII were buyers in the cash segment. The direction of foreign fund flows is expected to influence the route of the equity indices. In the recent 1 to 3 months, the inflows from FIIs have reduced
Last week we discussed “……. For bulls protecting Friday’s low of 9685.55 is crucial. If the index recovers above the channel's support line and the 50 EMA, the bulls might be back in action. If Nifty broken Friday’s low decisively, further correction can be expected……...” Nifty managed to protect Friday’s low and gained 262 points which is 58% retracement to 452 point fall from 2nd August to 11th August.
On Daily chart, Friday, Nifty made a gap down candle and made first lower high and lower low after 3 days rally. Action formed a Black Opening Marubozu type candle. So protecting previous Friday’s low (9685.55) and protecting 50 day moving average are crucial for bulls to move up. Thursday’s high of 9947.8 is a near term strong resistance. Below 9685.55 more weakness can expect.
Options data for August series indicate highest Call Open Interest at the strike of 10000 and highest Put build-up shifted to 9800 from 9500. There is a huge unwinding seen at 9900 PE.
Global financial markets are closed in negative. Volatility returned to US market.
In last week, FII were sellers and DII were buyers in the cash segment. The direction of foreign fund flows is expected to influence the route of the equity indices. In the recent 1 to 3 months, the inflows from FIIs have reduced
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