#NIFTY View on the 28th of March.

 In the week end review we saw two things. The immediate up move lacked conviction and lack of volume would send the index in a sideways move. The last two day’s action is only in line with our expectations. On Monday we saw a down bar on low volume. Today we saw the index open much above yesterday’s close only to result a narrow up bar resembling a “No demand” Bar.  The last two Bars with their low volume clearly indicate lack of interest from the Smart money. So as expected we will see more sideways moves,

#NIFTY Weekend view on the 26th of March.

 When the index gaped down on the 22^nd to make new low there a general impression of increasing bearishness. But we saw that the supply was of poor quality and the end of the down move would be very soon. The index moved up the next couple of sessions breaking the immediate down move. However this move also lacks conviction as indicated by the low volume.  Unless the volume picks up very soon we would be seeing sideways movement for some time to come. We did anticipate consolidation between 9220 and 9085 it looks like the range is going to wider around 9220-8990. The index is in safe territory as long as it is above 8990. The coming week could a dull one considering the expiry.

#IPCALAB - Moving out of Consolidation

#IPCALAB  Seems to be moving out of months of consolidation.

#NIFTY View on the 22^nd March.  Yesterday’s signs of strength were negated by today’s move. Today’s move was indeed unexpected.  On hindsight the media is trying to attribute the move to Trump policies etc. The reality is that there was really no real bad news for such a negative sentiment. This makes me wonder if the smart money was aware of some news which we are not. Or was this a shakeout move.

On the other hand though the index gapped down the selling pressure did not force the index down much further, just 17 points.  The intraday chart does show demand trying to keep up the index but gave in to supply towards the end of the session. The volume was average and lesser than yesterday. All these show that the supply was indeed of poor quality and we should see the end of the immediate down move very soon. The levels which can be significant are 8990 and 8950.  

NIFTY on 21st March

#NIFTY View on the 21^st of March.  Post the elections the Index scaled to new heights. However we saw supply dominating with increased volume on the day when the index scaled new level. Yesterday we saw a supply getting stronger with much more increased volume.  However the less than average spread indicates that the supply was absorbed to a large extent by demand. Otherwise the spread would have been much wider. Today we saw the index open in the positive side but dipped much lower later. Towards the latter half of the session the demand came in to take the index up and close much higher.  The volume dropped lower to indicate diminished selling. Also there is mismatch in the effort to result ratio. The increased volume has not produced the equivalent result.   9085 is the last price rejection level. Hence tomorrow could be an up day as the downside is getting limited. We can expect some consolidation between 9085 and 9220 levels before any higher level is attempted.