12.00 AM Jan 21st
Support comes in at the 10878, 10783, 10665 while resistance comes in at the 10979, 11078, 11110 levels.
The Nifty has broken out upwards from its symmetrical triangle pattern but needs to take out the 10930 and the 11000 level in that order for a bigger move to unfold; despite being in a weak pattern, the Bank Nifty has held on, a decisive close below 27300 was needed (for a decline) but after a single close below this aforesaid level, it has remained sacrosanct (the level) after that. The Vix has firmed up a bit which makes the situation a bit confounding. Maximum call open interest comes in at 11000 followed by 11200 while maximum put open interest comes in at 10800 followed by 10500 indicating a well defined range (not surprising that we have now entered the fourth week of a long series) but the situation remains fluid with movements expected on either side. Nifty has seen some nominal reduction in open interest during the week to end at 2.45 cr (rounded off) and has seen more reduction of nearly 0.58% (rounded off) on the last trading session of the week; the Bank Nifty open interest has seen some minor open interest addition (it stands at 20.00 lakh) compared to the last week; has seen some sharp reduction in open interest (05.16%) on the last trading session of the week. The Vix has spent almost the entire week in a rangebound movement above the 15.50 level (in terms of closing) except that it ended at 16.61 (lower from an intra week high of 16.90) which has resulted in a range bound market. The Nifty has threatened much but has failed to deliver and even now seems to be setting the stage for an upmove but a slightly strong Vix is threatening to be a part popper; Nifty needs to close above 10930, 11000 levels; Bank Nifty needs to participate along with the IT Index for the much vaunted upside to unfold; Reliance Ind. needs to appreciate further (possible); Vix needs to cool off. The current positive bias needs the aforesaid to happen to gain further momentum. Support comes in at the 10878, 10783, 10665 while resistance comes in at the 10979, 11078, 11110 levels.
|S&P BSE Auto||18262.97||-224.14|
|S&P BSE BANKEX||29972.02||-206.75|
|S&P BSE Capital Goods||16411.23||67.93|
|S&P BSE Consumer Durables||21092.00||-62.25|
|S&P BSE FMCG||11358.81||-50.40|
|S&P BSE Healthcare||13432.98||-311.49|
|S&P BSE IT||15378.44||-33.48|
|S&P BSE Metals||10014.34||-237.96|
|S&P BSE Oil and Gas||13073.34||185.38|
|S&P BSE PSU||6437.14||36.44|
|S&P BSE TECk||7601.07||-8.91|
|S&P BSE Smallcap||13252.81||-111.18|
|S&P BSE Midcap||13940.54||-167.07|
|Nifty MID100 Free||16214.70||-157.60|
How are the markets looking?
Hemen Kapadia, Technical Analyst
Day - 19th Feb. 2019
Time - 13.00hrs