12.00 AM Mar 9th
Support comes in at the 10979, 10878, 10783, 10665, 10550, 10490 while resistance comes in at 11078, 11143, 11235, 11340, 11495, 11605, 11753, 11856, 11959, 12100, 12292.
The Nifty has more or less moved on expected lines and the dead cat bounce has been followed up with a renewed meltdown. The earlier gap didn't get covered up (sign of weakness) and now there is a new bigger, bearish gap between (11035.10 - 11244.60) and the outlook still remains weak especially if the aforesaid gap remains uncovered during the week. Maximum call open interest comes in at 11500 followed by 11700 while maximum put open interest comes in at 10500 followed by 10900 indicating a clearly lower trading range (not surprising considering that we are in the second 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 major addition in open interest during the week to end at 1.74 cr (rounded off) and has seen an increase of nearly 15.01% (rounded off) on the last trading session of the week; the Bank Nifty open interest has seen some mild open interest being shed (it stands at 12.19 lakh - rounded off) compared to the last week; has actually seen some nominal decrease in open interest (01.98%) on the last trading session of the week. The Vix has spent almost the entire week in a rangebound movement (with a clear positive bias) above the 23.00 level (in terms of closing) except that it ended at 25.64 (higher from an intra week low of 19.92) which has resulted in an extremely volatile market. The Nifty continues its downward journey with alacrity as the series of lower tops and lower bottoms continues unabated while a highly elevated Vix remains a large threat looming on the horizon. A developing oversold situation could see a recovery towards the end of a truncated week but international markets would need to support this anticipated stability. It would be prudent to wait on the sidelines for a clearer picture to emerge. Support comes in at the 10979, 10878, 10783, 10665, 10550, 10490 while resistance comes in at 11078, 11143, 11235, 11340, 11495, 11605, 11753, 11856, 11959, 12100, 12292.
|S&P BSE Auto||11243.97||974.47|
|S&P BSE BANKEX||21868.34||2114.50|
|S&P BSE Capital Goods||10916.76||332.42|
|S&P BSE Consumer Durables||19759.45||989.42|
|S&P BSE FMCG||10804.25||822.25|
|S&P BSE Healthcare||13504.01||1109.04|
|S&P BSE IT||12715.69||934.81|
|S&P BSE Metals||5911.08||444.69|
|S&P BSE Oil and Gas||10742.55||735.35|
|S&P BSE PSU||4467.63||183.63|
|S&P BSE TECk||6408.36||493.92|
|S&P BSE Smallcap||9797.21||388.17|
|S&P BSE Midcap||10771.38||552.33|
|Nifty MID100 Free||11929.50||612.70|
How are the markets looking?
Hemen Kapadia, Technical Analyst
Day - 14th Apr. 2020
Time - 13.00hrs
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