12.00 AM Jul 29th
Support comes in at the 11235, 11143, 11078 while resistance comes in at 11340, 11495, 11550, 11605, 11753 , 11856, 11959, 12041.
The Nifty has moved exactly on expected lines and the anticipated minor recovery has been too minor actually and the sell on bounce strategy has worked perfectly as the lower top, lower bottom scenario continues unabated. An oversold situation on the daily chart seems to indicate the possibility of a bounce to the 11400 level. Maximum call open interest comes in at 12000 followed by 11800 while maximum put open interest comes in at 11000 followed by 11200 indicating a rather rough trading range (not very surprising as this is now the first week of the current series) compared to the last week but the situation remains fluid with movements expected on either side. Nifty has seen some notable addition in open interest during the week to end at 1.69 cr (rounded off) and has seen shedding of nearly 01.54% (rounded off) on the last trading session of the week; the Bank Nifty open interest has seen some notable open interest being reduced (it stands at 13.81 lakh - rounded off) compared to the last week; has seen some very nominal decrease in open interest (00.09%) on the last trading session of the week. The Vix has spent almost the entire week in a rangebound movement (with a slight positive bias early on) above the 12.00 level (in terms of closing) except that it ended at 12.13 (lower from an intra week high of 14.48) which has resulted in a mixed market. The Nifty could once again give an unsustainable recovery and the view still remains sell on rise but the bounce could take some time to unfold and the latter part of the week could be looked at to exit longs before deciding a short strategy. The market remains in an intermediate downtrend and a near term oversold situation is expected to result in an upside, the sustainability of which is rather suspect as of now. Support comes in at the 11235, 11143, 11078 while resistance comes in at 11340, 11495, 11550, 11605, 11753 , 11856, 11959, 12041.
|S&P BSE Auto||15489.74||-252.48|
|S&P BSE BANKEX||30538.22||-788.00|
|S&P BSE Capital Goods||16477.75||-173.31|
|S&P BSE Consumer Durables||22603.41||-24.09|
|S&P BSE FMCG||10796.48||-12.81|
|S&P BSE Healthcare||12347.70||-59.85|
|S&P BSE IT||15820.80||47.81|
|S&P BSE Metals||8200.10||-296.11|
|S&P BSE Oil and Gas||12401.86||-335.29|
|S&P BSE PSU||6068.34||-186.75|
|S&P BSE TECk||7693.26||0.32|
|S&P BSE Smallcap||12119.43||-270.89|
|S&P BSE Midcap||13080.60||-178.88|
|Nifty MID100 Free||15174.70||-307.20|
How are the markets looking?
Hemen Kapadia, Technical Analyst
Day - 27th Aug. 2019
Time - 13.00hrs