Nifty is now struggling 0 897

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.

Leave a Reply

avatar

Send this to a friend