Key events during the week:
Options data for September series indicate highest Call Open Interest remains at the strike of 10000 whereas the highest Put build-up is at 9700. Thus Options data suggests a trading range with resistance coming at 10000 & support at 9700.
Nifty opened the week at 9984, made a high of 9988, low of 9861 and closed the week at 9934. Thus the Nifty closed the week with a loss of 40 points (-0.40%0. Sensex and Nifty closed the week in the negative zone after three consecutive weeks of gains.
On daily chart, Nifty traded in a narrow range and managed to close above 10d ema.
On weekly chart, both Nifty and Sensex made a black body candle with longer shadow on bottom. Nifty broke the previous week high, but sensex is not able to break previous week high. Bearish patterns are more visible on Sensex. On Sensex, weekly open and high is same.
I have argued in last week, “…….Looking at the present scenario, Now Nifty stands at important retracement resistance level of 66%. It took 3 weeks time to retrace 66% retracement against one week fall. In a strong bull market should retracement in faster time. Nifty to close well above this level for further upmove.
Interestingly when Nifty broke the important resistance of 9948, Sensex not able to break the resistance of 31937.51. Sensex should close above31937.51 for further upmove.
While Nifty retraced above 61.8% level Sensex retraced only 50%level. Sensex need to move above 66% level for further upmove.
For Nifty staying above 9784 is crucial for further upmove. Once Nifty break Friday’s high 9983.45, next strong resistance comes around 10,046 – 10088 level.…..”
Nifty and Sensex failed to sustain above the critical reversal level mentioned above. Nifty in a range of 9685.55 to 9988.40 and Sensex in the range 31,128.02 to 31944.10. So the level mentioned in the last week is still valid : On upside Nifty should close above 9988..4 and on down side move Nifty should close below 9685.55.
- Geo-political tensions escalated during the week
- Global financial markets are closed in negative note. Benchmark indices in Japan and Singapore fell by 2.2% and 1.5% during the week
- Weekly basis, FII were sellers in the cash segment
Options data for September series indicate highest Call Open Interest remains at the strike of 10000 whereas the highest Put build-up is at 9700. Thus Options data suggests a trading range with resistance coming at 10000 & support at 9700.
Nifty opened the week at 9984, made a high of 9988, low of 9861 and closed the week at 9934. Thus the Nifty closed the week with a loss of 40 points (-0.40%0. Sensex and Nifty closed the week in the negative zone after three consecutive weeks of gains.
On daily chart, Nifty traded in a narrow range and managed to close above 10d ema.
On weekly chart, both Nifty and Sensex made a black body candle with longer shadow on bottom. Nifty broke the previous week high, but sensex is not able to break previous week high. Bearish patterns are more visible on Sensex. On Sensex, weekly open and high is same.
I have argued in last week, “…….Looking at the present scenario, Now Nifty stands at important retracement resistance level of 66%. It took 3 weeks time to retrace 66% retracement against one week fall. In a strong bull market should retracement in faster time. Nifty to close well above this level for further upmove.
Interestingly when Nifty broke the important resistance of 9948, Sensex not able to break the resistance of 31937.51. Sensex should close above31937.51 for further upmove.
While Nifty retraced above 61.8% level Sensex retraced only 50%level. Sensex need to move above 66% level for further upmove.
For Nifty staying above 9784 is crucial for further upmove. Once Nifty break Friday’s high 9983.45, next strong resistance comes around 10,046 – 10088 level.…..”
Nifty and Sensex failed to sustain above the critical reversal level mentioned above. Nifty in a range of 9685.55 to 9988.40 and Sensex in the range 31,128.02 to 31944.10. So the level mentioned in the last week is still valid : On upside Nifty should close above 9988..4 and on down side move Nifty should close below 9685.55.
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