MarketsmithIndia Articles

SWINGTraderIndia - Weekly Big Picture September 27 2021

September 27 2021 | Reading Time: 5 Minutes
In the weekly report published on September 20, we said “The bullish momentum will remain intact in the upcoming  weeks and the index might move toward the 18,000–18,200 mark in the next few weeks. However, on the flip side,  Nifty has support at around 17,350 levels, followed by 17,250 levels.” Today, the Nifty closed at 17,853.20. 

The analysis of the daily chart depicts the following:  
  • The index gained around 1.52% this week. It has successfully maintained a higher-top, higher-bottom price forma tion on the weekly chart for the past eight weeks. The chart plotted on the weekly chart is quite bullish and shows  no sign of weakness yet. The momentum indicator RSI on the weekly chart is placed at 81 and is trending higher in  the bullish zone. It has been maintaining bullishness for the past eight weeks. 
  • Likewise, on the daily chart, the index started the week on a negative note and was trapped in the small intraday  consolidation. It touched the low at 17,361, which is close to our support level given on the weekly report. The past  four sessions of this week saw a great comeback and brought back optimism to the market. The market has had a  V shape recovery and also touched an all-time high of 17,947 for the first time this week. The momentum indicator  RSI on the daily chart has accelerated upside and is placed at 78 (which is almost 10 points higher in four trading  sessions). 
  • On the options data front, PCR for monthly contracts expiring September 30 stands at 1.12. From the OI data  perspective for weekly contracts expiring September 30, maximum Call OI built up was seen for 18,500 strike price,  followed by 18,000 strike price, which amounts to 112.99 lakh contracts and 106.02 lakh contracts, respectively.  Likewise, maximum Put OI built up was seen for 17,800 strike price, followed by 17,500 strike price, which amounts  to 73.65 lakh contracts and 74.50 lakh contracts, respectively. 
  • Further, as per the O’Neil Methodology of market direction, the current market is in a “Confirmed Uptrend” with two  distribution days in the last 25 trading sessions. 
Summary: All the above-mentioned multi-timeframe technical parameters, along with the O’Neil Methodology of  market direction, indicate the index is in a strong bullish trend. All the technical indicators suggest strong momentum,  which may accelerate further from the current level. We expect the index may rise beyond the 18,000 mark in the  upcoming days. However, it may face some psychological resistance and some profit-booking cannot be denied. 
Apart from Nifty50, another key index, the Bank Nifty, is gradually moving toward the 40,000 mark. 
FII/ DII Activity in the Second Week of September 

Current Status of Major Sectoral Indices - Per O’Neil Methodology

Current Status of Major Global Indices - Per O’Neil Methodology 

SWINGTrader India performance chart  

What do you think? Please email us any questions or comments.

Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.

Related Article