Today, the Nifty50 index opened at 19554.25, marking a 0.4% decrease from its previous day’s closing level of 19632.55. It began the day with a significant red candle in the five-minute timeframe, indicating a potential downward movement, and started falling gradually until 12:55 PM.
A substantial green candle formed in the 5-minute timeframe at 1:00 PM, depicting recovery from this point. Upon closer examination in the one-minute timeframe, within just three minutes, Nifty recovered almost 36 points. By the end of this period, it had recuperated around 55 to 60 points from its low of 19412 levels.
After a lengthy consolidation lasting approximately one and a half hours, it began falling again during the second half around 2:00 PM. It breached the intraday low of 19434 and eventually concluded the day at 19428.30.
Calculating today’s high and low, we observe a range of 145 points within which Nifty was trading.
In terms of the weekly data, Nifty opened this week at 19576, reached a high of 19645, a low of 19412.75, and ultimately closed the week in the red at 19428. This closing value is 89 points or 0.45% lower than the previous week’s closing level. Although the Nifty50 in the preceding week concluded with a 0.66% decrease from its closing value the week prior, the current week’s candle exhibits a greater bearish sentiment compared to the candle of the previous week. Notably, this week’s candle lacks any lower-side wicks or shadows.
The Relative Strength Index (RSI) for Nifty stands at 47.51 on the daily timeframe, while on the weekly and monthly timeframes, it stands at 65.69 and 65.68, respectively. Notably, the RSI has fallen below 50, whereas last week it was above 50 on the daily timeframe and above 60 on the weekly and monthly timeframes.
Furthermore, throughout the week, Nifty50 traded below the 20-day moving average and above other key moving averages, such as the 50-day, 100-day, and 200-day averages, on the daily timeframe.
Taking into consideration the current weekly expiry, set for August 17, the Call Open Interest is approximately 18.76 lakh, while the Put Open Interest stands at 12.80 lakh. Significant open interest is observed at the 19600 and 19500 Call strike prices. On the Put side, substantial open interest is noted at the 19500 and 19400 strike prices, suggesting that these levels may serve as immediate resistance and support for the upcoming expiry.
The Put Call Ratio (PCR) for Nifty50 currently stands at 0.68, according to data from the National Stock Exchange.
Below is the chart depicting the last two days of Nifty50’s movement in a 5-minute timeframe.
Week of (October 16-20): Among the fifty Nifty stocks, thirty-six ended the day in the red. Whereas, ITC and Tata Steel were the major losers today, both declining by 2.75% and 2.30%, respectively.
Nifty50, the most beloved and widely traded index in India, ended the week by surrendering nearly all the gains from the previous week and closed almost at the prior week’s opening level.
If we observe today’s session, it opened at 19,542, which was 83 points higher than the previous day’s closing level of 19,625. It reached intraday highs and lows of 19,594 and 19,519, respectively, and finally concluded the day at 19,543, which is 0.42% lower than the previous day’s closing level.
Initially, looking at the intraday chart, Nifty was choppy and range-bound throughout the day. You might feel frustrated, like returning to your starting point after a long five-hour journey, which is precisely what Nifty did during the intraday session. It closed the day when it began today’s trading session. Intraday traders might have felt frustrated today.
In the first five minutes of opening, it formed a hammer candle with a very long lower wick and a minimal body, indicating that it might fill the morning gap quickly. However, it only covered nearly 30 points, and that turned out to be the highest point of today’s session, reached at 9:30 AM. Afterwards, it began a slow and steady decline and fell so gradually that it couldn’t even breach the low of the first five candles. To better understand, let’s take a look at the intraday chart of the Nifty index in a five-minute time frame.
Weekly and Monthly:
Shifting our focus to the weekly and monthly observations, the Nifty has formed a red full-body candle with a noticeable wick at the top, indicating aggressive selling from higher levels. The trading range for this week is 337 points. The candle formed this week closely resembles last week’s candle, with the only difference being its red colour. It closed almost at the same level as last week’s opening, which was 19,539. Throughout the week, it declined by approximately 208 points from the previous week’s closing level.
Looking at the monthly candle has formed a doji-like candle, where sellers were pushing the Nifty lower, while buyers were attempting to drive the price toward the upside.
The Relative Strength Index (RSI) stands at 44.25 on the daily timeframe, 57.58 on the weekly, and 65.14 on the monthly. The RSI has deteriorated across all timeframes.
In addition, the Nifty50 has closed below the 20-period and 50-period moving averages on the daily chart but remains above the 20-period moving averages on the weekly chart.
Open Interest:
Considering the current monthly expiry set for October 26, the Call Open Interest is approximately 23.25 lakhs, while the Put Open Interest stands at 17.91 lakhs. Significant open interest is observed at the 19,700 and 19,600 Call strike prices. On the Put side, substantial open interest is noted at the 19,600 and 19,500 strike prices, suggesting that these levels may serve as immediate resistance and support for the upcoming expiry.
The Put Call Ratio (PCR) currently stands at 0.77, according to data from the National Stock Exchange.
Disclaimer: This post has been written exclusively for educational purposes.
Weekly Wrap: October 27, 2023: Nifty halts three-day fall, ends the week above 19,000!
Among the fifty stocks, forty-four closed the session in the green, while the remaining six closed in the red today.
Today, the broader indices, NSE Nifty50, and BSE Sensex, ended the day in the green. The Nifty50 index opened the day at 18,929, 72 points higher than the previous day’s closing level of 18,857. During the intraday session, it reached an intraday high of 19,076 and a low of 18,927, ultimately concluding the day at 19,047. This represented an increase of 190 points from the previous day’s closing level.
At first glance, the Nifty50 formed higher highs and higher lows during the intraday, particularly in the five-minute time frame. In the first five minutes of trading, it formed a doji candle with wicks on both sides and a minimal body. However, the second candle showed the entry of bulls, forming a large green bullish candle. Throughout the day, it steadily moved higher, finally closing above the significant level of 19,000 at 19,047. Interestingly, the low point of the first 5-minute candle became the low point for the day, and it closed near the day’s high point.
Weekly and monthly observation:
Shifting our focus to the weekly observations, the Nifty has formed a red full-body candle with a noticeable wick at the bottom, thanks to today’s small but vital recovery of 190. The trading range for this week is 719 points, which is over two times larger than last week’s range. However, it closed below the significant support of 19,200, which was last tested in the month of August this year. Throughout the week, it declined by approximately 495 points from the previous week’s closing level.
Looking at the monthly candle, it has formed a big red candle with a wick on both sides. However, there are still two trading sessions left to conclude this October month. Let’s hope for the best.
The Relative Strength Index (RSI) stands at 34.99 on the daily timeframe, 48.17 on the weekly, and 60.94 on the monthly. The RSI has deteriorated in the weekly and monthly timeframes. In addition, the Nifty50 has closed below the 20-period moving average on the weekly chart this week.
Open Interest:
Considering the current monthly expiry set for November 02, the Call Open Interest in contract terms is approximately 18.12 lakhs, while the Put Open Interest in contract terms stands at 14.64 lakhs. Significant open interest is observed at the 19,200-strike price. On the Put side, substantial open interest is noted at the 19,000-strike price, suggesting that these levels may serve as immediate resistance and support for the upcoming expiry.
The Put Call Ratio (PCR) currently stands at 0.80, according to data from the National Stock Exchange.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Weekly Wrap: Nifty gained around 1% this week to close at 19,230
Out of five trading sessions in the week, the index closed the day in green for three days, while it closed in red for two days.
Today, the broader indices, NSE Nifty50, and BSE Sensex, ended the day in the green. The Nifty50 index opened the day at 19,241, 108 points higher than the previous day’s closing level of 19,133. During the intraday session, it reached an intraday high of 19,276 and a low of 19,211, ultimately concluding the day at 19,231. This represented an increase of 97 points or 0.51% up from the previous day’s closing level.
Intraday Observation:
At first glance, the Nifty50 was trading in a range during the intraday, when observed in the five-minute time frame. Initially, the index opened with a gap of 108 points up from its previous closing. Despite a strong opening throughout the day, the Nifty remained in a range of approximately 45 points.
During the closing session around 2:45 PM, the market broke out of the range but encountered a pin bar candle with a long wick on the lower side. However, the recovery was not particularly strong, and the index finally closed at 19,231, near the day’s low as shown in the intraday chart of the Nifty50 index in the five-minute time frame.
Weekly and monthly observation:
Shifting our focus to the weekly observations, the Nifty closed the week positively, forming a green candle. The trading range for this week was 336 points, compared to 719 points last week, which is almost half of last week’s range. However, it closed the week at a significant resistance level of around 19,200, which was previously a strong support.
Throughout the week, it increased by approximately 183 points from the previous week’s closing level. If we compare this week’s candle with the previous week’s, it formed inside the range of the last week’s candle as shown in the chart below.
Looking at the monthly candle, it is a replica of the weekly candle as November has just started, and only three trading sessions have occurred.
The Relative Strength Index (RSI) stands at 44.48 on the daily timeframe, 51.34 on the weekly, and 62.01 on the monthly. The RSI has improved in the weekly and monthly timeframes. In addition, the Nifty50 has closed below the 20-period moving average on the weekly chart this week.
Open Interest:
Considering the current monthly expiry set for November 09, the Call Open Interest in contract terms is approximately 16.40 lakhs, while the Put Open Interest in contract terms stands at 12.98 lakhs. Significant open interest is observed at the 19,300 and 19,400 strike prices. On the Put side, substantial open interest is noted at the 19,200 and 19,100 strike prices, suggesting that these levels may serve as immediate resistance and support for the upcoming expiry.
The Put-Call Ratio (PCR) currently stands at 0.79, according to data from the National Stock Exchange.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.