NIFTY TECHNICAL REPORT FOR NEXT WEEK 25-05 -2015

WEEKLY CHART FOR NIFTY 

WEEKLY RESISTANCE: 8490,8562,8747,8932 
WEEKLY SUPPORT:  8305,8192,8007,7822
DAILY CHAT FOR NIFTY

 

















DAILY RESISTANCE: 8493, 8534, 8621,8708
DAILY SUPPORT:  8406, 8360, 8273,8186

The Sensex rallying 148 points on Friday at 27957, and the Nifty up 38 points at 8459. Sensex ends 148 points higher; Nifty above 8450; SBI loses steam on higher restructured loans. The stock markets closed at their 4-week highs, with the benchmark Sensex ending the day with gains of 148 points. The broader Nifty added 38 points to finish off at 8,459, as investors appear to be buying equities on comfort that the RBI may ease rates in June, while the US Federal Reserve may not raise rates any time soon.

ABOVE 8562 IT IS BULLS AREA
BULLS CAN MOVE TOWARDS 8600 AND 8700

BEARS ARE ALSO CAN BE ACTIVE
BELOW 8406 BEARS HAVE TARGET AT 8200 AND AT 8000

Technical analysis for Nifty future

FOR THREE SESSIONS,NIFTY IS FACING RESISTANCE OF 100 DAY EMA @ 8440-50.Now 100 day EMA is a very good indicator of medium term trend. it has been month  now that the indices have been trading below 100 EMA. indices have not traded below 100 EMA for such a long time since september 2013.couple of closes above 8450 and we are set for 8600+ levels. however failure to do so will again drag back indices to sub 200 EMA levels i.e below 8200 odd levels. Lets see how the next five sessions till expiry pan out. We have seen reversal in RSI which could further push Nifty upwards. Technically Nifty future is looking bullish on long term charts, it may trade in range of 8500 and 8700 in near term while with the breaks of its support mark of 8493, You can buy nifty positional for a target of 8600 with a stop loss of 8000.

As you look at the diagram, you will notice that, similar to static support and resistance price levels, the EMA will change roles as support, once broken, becomes resistance and vice versa. These chart settings work remarkably well on multiple time frames; most notably the Daily, Hourly, and 1-minute charts. It should be noted that this EMA support and resistance seems to work best in trending markets. When markets are sideways and consolidating, price will typically have some reaction to the EMA but will cross above and below multiple times as price chops around.

 WHAT IS THE RBI SAYING

Output gap is still negative but close to potential growth. the official mentioned that the RBI has started looking at the new GDP series for their analysis. the sharp revision in historical GDP growth was due to revised methodology, incorporating increase in productivity growth and building in a lower GDP deflector. the broad view is that India’s growth will recover only gradually over the coming years. the RBI is projecting 7.8%GDP growth for FY16(data to be released next week) will consequently bring down the level of growth estimated for FY16

WEEKLY CANDLESTICK PATTERN BULLISH TRI STAR:

This pattern is a sequence of three Doji. The occurrence of this pattern is extremely rare, so when it occurs it should not be ignored. The Bullish Three Star consists of three consecutive Doji, in which the second Doji gaps below the other two Doji. It is sufficient that the gap is a body gap. There is no need for a gap between shadows. Bullish Tri Star requires that we have a market, which was in a downtrend for a long time. However, the weakening trend is probably indicated by the bodies that are becoming smaller. The first doji is a matter of concern. The second Doji clearly indicates that market is losing its direction. Finally, the third doji warns that the downtrend is over. This pattern indicates too much indecision leading to the reversal of positions

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