16 January 2016

NIFTY CHART & NIFTY WEEKLY REPORT FOR UPCOMING WEEK 18 JAN 2016

WEEKLY RESISTANCE FOR NIFTY: 7532, 7567, 7688, 8070
PIVOT POINT: 7497
WEEKLY SUPPORT FOR NIFTY :  7437, 7376, 7306,7211
WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 7503, 7526, 7567,7607
PIVOT POINT: 7479
DAILY SUPPORT FOR NIFTY :  7439, 7398, 7375,7351
DAILY CHART FOR NIFTY


















Sensex opened the week at 24787, made a high of 25018, low of 24387 and closed the week at 24455. Thus it closed the week with a loss of 479 points. At the same time the Nifty opened the week at 7542, made a high of 7619, low of 7428 and closed the week at 7446. Thus the Nifty closed the week with a loss of 164 points.
NIFTY FUTURE AS PER TECHNICAL,
This week saw the market capitulate and reach the intermediate Head and Shoulders target of Sensex 24486 and Nifty 7425 with ease. This was just the target of second degree pattern, but we remain well on course to achieve lower targets for patterns of higher degree which are at Nifty 7092 and 6741.But the scary part is till now the small and mid-cap stocks were more or less insulated from the fall, which will not be the case henceforth. This week both the small-cap and mid-cap indices have signaled a fresh bearish breakout. Hence one should not be surprised, if the small and mid-cap stocks experience a sharper fall as compared to the Nifty.
On the weekly charts, both the indices have formed a Black body candle in line with the downtrend after the formation of Fooling Three Soldiers last week. On the daily charts both the indices have formed a big Black body candle. Thus daily and weekly candlestick studies indicate continuation of bearishness.
On the higher side, there lies a very strong Resistance zone between Sensex 26243-26256 and Nifty 7944-7979 which is a result of confluence of 50% Retracement (Sensex 26243 and Nifty 7944) and Intermediate Rally Top (Sensex 26256 and Nifty 7979). A close above this will make the medium term trend positive.
This week both the indices breached the strong support zone between Sensex 24833-24867 and Nifty 7539-7551 and as a result the Nifty is on its way to sub-7000 levels soon. MACD and Price ROC are both negative and continue in Sell mode. RSI (31) suggests continuation of bearish momentum. Options data for January series indicates highest Call Open Interest build-up at the strike of 7700 and highest Put build-up at the strike of 7300. Thus Option data suggests a trading range with resistance coming in at 7700 and support at 7300.

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