NIFTY CHART & NIFTY OUTLOOK FOR MONDAY 21 SEPTEMBER 2015

DAILY RESISTANCE FOR NIFTY: 8042, 8102, 8206, 8310

PIVOT POINT: 7998

DAILY SUPPORT FOR NIFTY :  7938, 7894, 7790,7686

DAILY CHART FOR NIFTY

WEEKLY RESISTANCE FOR NIFTY: 8105, 8228, 8521,8814

PIVOT POINT: 7935
WEEKLY SUPPORT FOR NIFTY :  7812, 7642, 7949,7056

WEEKLY CHAT FOR NIFTY:

NIFTY THIS WEEK

FED DEFENSIVE, MARKET NOT IMPRESSED.

BSE Sensex rallied 254 points or 0.98 percent to 26218 and the NSE Nifty climbed 83 points or 1.05 percent to 7981, driven by banking & financials, oil and select pharma stocks

The market sentiment got a temporary leg up from the news that the US Federal Reserve left key policy rates unchanged, bowing to the weak global economy. But interestingly it left open a possibility of a rate hike in October. So this can be considered a temporary relief as the uncertainty remains which certainly does not augur well for global as well as Indian market. As a result of the Fed inaction, Nifty touched 8000 levels in intraday trading, but could not sustain that level. The market movement suggests that Bears are using this current upward move to build up short positions. It is time for caution.

TECHNICAL ANALYSIS FOR NIFTY

NIFTY trading weak, but trying to recover from oversold zones. Momentum indicators are in buy mode divergences noted. Though trading well below its 20 EMA& 200 EMA, some more steam seems left in the corrective pullback. However it would be extremely difficult to overcome hurdle around 8100-8225 areas in short term.8400 looks a medium term top for the market. Bears are in the driver’s seat; they can keep adding shorts in all bounces between 81008225 with stop above 8400. Volatility likely to continue for few more weeks. key supports 7678-7540-7460-7420, key resistances 7940-8092-8195-8225.

Medium term: 8400- 7100 seems range for medium term

Long term: nifty 17% correction has come in 6 months .7118 nifty likely bottom and may from before year end, nifty structure still remains positive for investors to buy dips with long term horizon.

AS PER TECHNICAL,

ABOVE 8000 IT IS BULLS AREA 

BULLS CAN TARGET 8100 AND 8250,
BELOW 7935 BEARS ARE ALSO CAN BE ACTIVE  

BEARS CAN TARGET 7800 AND 7711,

WEEKLY CANDLESTICK PATTERN BULLISH THREE INSIDE UP

A Bullish Harami (or Harami Cross) pattern should be identified with all previously set rules. The third day should be a white day with a higher close. We see a Bullish Harami (or a Harami Cross) pattern in the first two days. The second day of the Bullish Three Inside Up signals a trend reversal since the second day’s small body (or Doji) already showed that the bearish power was diminishing. The third day confirms this fact, but still a further confirmation is required for a bullish reversal.