12.00 AM Feb 3rd
Support comes in at the 11605, 11495, 11340, 11235, 11143, 11078, 10979, 10878, 10783, 10665, 10550, 10490 while resistance comes in at 11753, 11856, 11959, 12100, 12292.
The Nifty has moved on expected lines as the slight note of caution has turned into a complete implosion of sorts and a whole bunch of important support levels have been breached on the downside indicating the possibility of further weakness. Maximum call open interest comes in at 12000 followed by 12200 while maximum put open interest comes in at 11500 followed by 11000 indicating a clearly negative trading range (a bit surprising considering that we are in the first week of the new series) compared to the last week but the situation remains fluid with movements expected on either side. Nifty has seen some solid addition in open interest during the week to end at 1.40 cr (rounded off) and has seen an increase of nearly 22.33% (rounded off) on the last trading session of the week; the Bank Nifty open interest has seen some decent open interest being added (it stands at 14.07 lakh - rounded off) compared to the last week; has actually seen notable increase in open interest (33.50%) on the last trading session of the week. The Vix has spent almost the entire week in a rangebound movement (with a clearly positive bias) above the 16.40 level (in terms of closing) except that it ended at 16.84 (higher from an intra week low of 14.68) which has resulted in a weak market. The Nifty has virtually fallen off a cliff and looking at the open interest added on the last trading day of the week (short positions) it does look like further weakness seems to be on the cards. The medium term outlook has turned negative and a close below the 11800 level does not augur well for the market. It would be better to wait and see the market settling down and while 11550 being breached in terms of closing could mean enhanced weakness. Support comes in at the 11605, 11495, 11340, 11235, 11143, 11078, 10979, 10878, 10783, 10665, 10550, 10490 while resistance comes in at 11753, 11856, 11959, 12100, 12292.
|S&P BSE Auto||17525.96||-63.44|
|S&P BSE BANKEX||35220.78||-138.87|
|S&P BSE Capital Goods||16555.87||-225.89|
|S&P BSE Consumer Durables||27394.71||432.40|
|S&P BSE FMCG||11455.06||-76.83|
|S&P BSE Healthcare||14186.51||-228.49|
|S&P BSE IT||16387.39||54.50|
|S&P BSE Metals||9541.12||-98.09|
|S&P BSE Oil and Gas||13739.32||-344.06|
|S&P BSE PSU||6303.71||-154.18|
|S&P BSE TECk||8223.18||22.82|
|S&P BSE Smallcap||14530.38||-152.27|
|S&P BSE Midcap||15518.81||-143.29|
|Nifty MID100 Free||17823.80||-155.00|
How are the markets looking?
Hemen Kapadia, Technical Analyst
Day - 18th Feb. 2020
Time - 13.00hrs