Pre Market Updates: Monday October 9, 2018
- Yesterday extremely volatile trading session with Nifty witnessing wild swings between 10,200 and 10,400 levels.
- The current oversold levels that the Nifty saw today along with the VIX are the ones that are not seen in past couple of years.
- We expect a modestly positive and stable start.
- Yesterday low of 10,198 is now expected to act as a base and within that broad range, we expect the market to consolidate.
- We expect pullback attempts to continue and recommend cautiously positive view for today.
- Any additional positions more so on the short sides should be avoided.
- Nifty likely to face resistance at 10500 and Support at 10200
Nifty50 Chart Analysis: Nifty formed a Hammer like candle on charts
- Hammer patterns are trend reversal patterns
So what is a Hammer candlestick pattern trying to tell you?
- A downtrend has occurred, and the bears push that downtrend even lower. However, the bulls then step in, driving the price back up.
- The bears have lost control.
- FII -1,805.07
- DII 1,973.97
- Nifty max pain level currently at 10800
- Bank Nifty max pain level currently at 24600
- Nifty PCR at 1.12 versus 1.07.
- Nifty Bank PCR at 0.79 versus 0.71.
- Nifty: 11000CE and 10000.00PE
- Bank Nifty: 25500CE, 24000 PE
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