12.00 AM Feb 4th
Support comes in at the , 10879, 10783, 10665 levels while resistance comes in at the 10979, 11078, 11110.
The Nifty hasnt done much in terms of a breakout from its trading range; swings have been on either side which wasnt entirely unexpected keeping in mind that it was a derivatives expiry of a rather long series coupled with the budget; the situation remains almost the same as a directional bias is still missing. Maximum call open interest comes in at 11000 followed by 11200 while maximum put open interest comes in at 10700 followed by 10400 indicating a rather rough range (not surprising since we have just entered a new series) but the situation remains fluid with movements expected on either side. Nifty has seen some major reduction in open interest during the week to end at 1.79 cr (rounded off) and has seen some addition of nearly 4.31% (rounded off) on the last trading session of the week; the Bank Nifty open interest has seen some significant open interest reduction (it stands at 14.22 lakh) compared to the last week; has seen some minor reduction in open interest (00.06%) on the last trading session of the week. The Vix has spent almost the entire week in a range bound movement above the 16.50 level (in terms of closing) except that it ended at 15.72 (lower from an intra week high of 19.80) which has resulted in a better market. The Nifty has been in suspended animation barring a couple of exceptions between 10500 on the downside and 11000 on the upside for almost 13 weeks or so without a decisive breakout on either side. Its a bit early in the new series for the open interest to build up, the Vix has come off since we are past the event risk but the Nifty still needs to close and sustain above the 11000 level. The Bank Nifty (Rbi Credit Policy could provide a trigger) isnt performing thereby putting a question mark on the 11000 level being taken out; it still seems a wait-n-watch scenario while IT, Pharma and with a lag effect, Metals could be positive sectors. Support comes in at the , 10879, 10783, 10665 levels while resistance comes in at the 10979, 11078, 11110.
|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