Market direction /Trend ..?, Index Analysis

Well , continuing after a weeks gap , after quite noise reduction . Nifty & Bank nifty tested /taken lower end & higher end of support / resistances.
Weekly & monthly charts of both indices , indicates that, the rally going on is , may be a pull back rally, Indices , either consolidate/ flat or once again retest the lower supports till the state election results,
On daily chart trending phase turned in to trading phase,Reliance chart is an example, while mkt was up , reliance was down , while mkt was going down , reliance was up . For Reliance support being 920/ 917 /904. For HDFC Bank support being 1838 / 1834 / 1829 / resistance being 1843

For nifty 10287 needs to be crossed , to negate pull back . Support being 10203 /10225 Resistance being 10290 / 10308 / 10387
Bank nifty needs to be close above 25430 , to negate pull back. resistance being 25355 / 25375 / 25455 / and lower level support being 24850.
Rally on CNXCONS seems to be continuation rally , there seems to be breakout on FMCG index , Pharma index seems to be bottoming out , buying on correction will reward
Finally disclosure is that , the above writings are chart observations not recommendations .

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11-12-2017
Today’s gap up opening & thereafter not much action , even after nifty closed above desired level( BN not closed above desired level to negate pull back rally) and decrease in Future / spot difference is a kind of pause in the rally, Divergences between daily & weekly / monthly , divergence between reliance & nifty is a bit of trouble, & Also there is a dull activity in DII/ FPI action.
Indices CNXCONS, FMCG & Pharma done well & continue to do so.and may be before the event market is interested in defensive sector. weakest index is Metal index , & may continue the under performance.

Tomorrows market action seems to be important one, unless there is a gap down opening.
If correlation between Nifty & Currency is true , according to Zerodha Varsity , bought USDINR future to check. & let me see what happens.
Support for nifty being 10257 / 10235 / 10219 / & resistance being 10334 / 10387
For BN support being 25388 -384 / 25334 / 25310 / & resistance being 25443 / 25455 / 25484 / 25500
Reliance closed below its support level of 917, support being 911 / 905-4 / 898
HDFC Bank support being 1845 / 1838 / 1834 resistance being 1847 / 1852 / 1857

Nifty & Banknifty made lower highs at their respective resistance levels, an indication of further downside for indices. chances of retesting recent lows. Bank nifty is the weakest of the index. Pvt bank index on the verge of collapse , if it closes below 13822 level. PSU bank direction is not so clear.
.support for Nifty being 10235- 230 / 10225- 210-200 / 10190 -10175 / 10155 / , 10190 level being important level for Nifty. resistance being 10265 / 10270 / 10300 / 10325
support for BN being 25069 / 25000 / 24938 / 24743 Resistance being 25168 / 25219 / 25321
Like indices Reliance also made lower high resistance being 917-918 / 921 support being 911 / 906 / 900 / 893 / 882
For HDFC Bank support being 1811 / 1800 / 1795. if HDFC Bank closes below 1795 , it will drag down Banknifty to a lowest level.
As correlation between Nifty & Currency proved to be true as stated by Zerodha varsity by todays market action & booked profit on USDINR future & Nifty PUT option
as these are chart observations
.

I am Sure but is it possible Market will Test 10000 levels in upcoming sessions???

FII & DII Data

Foreign institutional investors (FIIs) bought shares worth Rs 843.2 crore, while domestic institutional investors sold shares worth Rs 853.67 crore in the Indian equity market on Tuesday, as per provisional data available on the NSE

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Its highly possible, if nifty closes below 10210- 10190 on closing basis , its possible because daily nifty range being around 90 points.

Look at the Options Data.
Looks Interesting.

Nifty made one more lower high, & todays market action shows that market thrust is on the downside.
Nifty closed just near to its support ( 10190 ) , if it breaks below & also breaks below levels of 10149 & 10077 & closes below it , there will be much more lower level for nifty. same thing for the bank nifty , surprisingly bank nifty days low & support level was exactly at ( 24938 / 25000 ) which i mentioned yesterday.
Market actions seems to be that , even after state election result events , chances of a big correction on indices . Metal index is going to take a big hit on downside , probable next index is Private banks.
Support levels for Nifty being 10190 / 10170 - 165 / 10149 / 10093 / 10077 / 10032
For BN 24923 - 983 / 24842 / 24743 / 24697

I’ll not Go into Deep analysis Today Nifty Took Support at 10170 If Nifty Will Test These Level tomorrow, We will se 10030 levels Soon.

two more days of volatility is expected on indices. todays market action seems to be a short covering rally , FIis bought while DIIs sold. before going in to the event. Nifty tested 3 levels of supports , on daily chart nifty is on trading phase , may be after 18 th December there will be a clear cut market direction , trouble is divergences on weekly charts.
Resistance for Nifty being 10260 - 271 / 10290 / 10305 - 308 / 10347 / 10387 support being 10250 / 10219 / 10222 / 10210 / 10190 / 10170 / 10150
For BN resistance being 25179 / 25181 / 25202 / 25260 - 271 / 25284 / 25388 / 25468 / support being 25168 / 25106 / 25081 - 66 / 24985- 981 / 24966

Well after being good start to the opening , Nifty not able to close above upper band resistance & not even 1% upside., still nifty seems to be in a trading range, nifty needs to trade, consistently above 10362-10365 -10387- 10392 for much higher levels. same for Bank nifty to trade above 25406/ 25446 / 25472 / 25530

Support for nifty being 10326 / 10308 / 10290 / 10271 / 10245 / 10190
Support for BN being 25406 / 25378 / 25320 / 25279
Still not sure of the direction , fingers crossed waiting for the actual election results on 18 th December.

Todays event and market reaction is remarkable. Being many years in stock market , for the first time i saw , people of the state supported economic policies , on back drop of delicate social issue. Rejected “appeasement & vote bank policies” , Rejected " Dynastic Regime " Todays event is not only the victory for prime minister Modi , but for the Nation , definitely going towards for a good new direction. If some one has itch for me & for other people in their mind , i don’t care for them , i ignore them , because i am focusing on winning trade, ( Holding Religare locked in ,upper circuit from last 2 days)

Well coming to stock market , Todays market action seems to be in a 500 point range, while volatility decreased after 1 st hour of trade & profit booking at the last hour , market seems to be range bound going forward. 10050 as the base on lower side . Momentum indicators slowing & divergences with other indicators & price seems to be good time for PUT/CALL writers.Chances of difficult days for traders going forward, only few coming ,trading days will show the direction of the market
Nifty closed almost at resistance , as mentioned by me , in yesterdays note, Resistance for nifty being 10392 / 10408- 426/ 10445 / 10490 / 10514 / 10536 / 10560 / 10585 / 10636 10671
support being 10517 / 10491 / 10465 / 10387 / 10362 / 10334 / 10303 - 308 / 10290 / 10270 /10250 10190 /
For Bank nifty resistance being 25625 /25747 / 25753 / 25812 / 25966 support being25645 / 25573 / 25535 / 25484 / 25466 / 25323 / 25295

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Well after few days gap , writing back, about chart analysis. As i mentioned in last post, nifty seems to be in 500 point range, i was highlighting ,the resistance & support level in previous post and that levels are still valid.
In TA resistance becomes support & vice versa , so Nifty closed at support level of 10490 mentioned in the last post, along with the previous support level , new levels for Nifty being 10470 / 10450 / 10445 / 10435 - 426 / 10408 - 406 / 10385 /10373 / 10250
Bank nifty being the weakest index , Resistance for BN being 25560- 552 / 25535 / 25500 / Support being 25484 / 25477 / 25410 / 25375 / 25350 / 25242 / 25118
And for Reliance support being 920 / 914 / 900 / 892 / 874
for HDFC bank resistance being 1860 / 1857 / support being 1853 / 1849 / 1840 / 1838 / 1829

On Pharma index , i wrote on 9-12-2017 post , "Pharma index seems to be bottoming out , buying on correction will reward " and todays Pharma stock actions confirmed that view ( as an active trader , i bought Pfizer at 1955 level & sold it at 2059 level , bought sun pharma at 531 level & holding it , exited Religare at 76 level ) why i am mentioning my trade is that , while replying to , one of fellow Zerodha trader about Rcom , i had mentioned 28 level for Rcom & today Rcom achieved that level Chart indicators turns in advance , but price action follows later , so Patience & TA helps traders & Investors

Previous support / Resistance for Nifty/ bank nifty mentioned yesterday ( 10490 / 10514 / 10536 / 10560 / 10585 / 10636 10671) Support ( 10470 / 10450 / 10445 / 10435 - 426 / 10408 - 406 / 10385 /10373 / 10250) is valid for next trading day , since mentioned Support /Resistance’s are validated by the market , Surprisingly Bank nifty high ( 561.95 ) and low 25417.10 are almost equal , as mentioned by me as Resistance & support ( highlighted numbers in yesterdays post)
Chances of Nifty may drop to 10400 level & depends on Reliance . Bank nifty continue to be a weak index

Again today Nifty / Bank nifty validated the Resistance/ support level of yesterdays post , there is a just 2 points near to the Nifty resistance level,(R- 10536/ day high 10538.70) 6 points to the resistance level for Bank nifty ( R-25560 days high 25566.10) , as mentioned in yesterdays post. For one more trading day same Resistance & support level will be applied.