NIFTY CHART & NIFTY WEEKLY REPORT FOR UPCOMING WEEK 25 JAN 2016

WEEKLY RESISTANCE FOR NIFTY: 7452, 7525, 7742, 7861

PIVOT POINT: 7379

WEEKLY SUPPORT FOR NIFTY :  7284, 7211, 7138,7017

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 7434, 7467, 7486,7504

PIVOT POINT: 7400

DAILY SUPPORT FOR NIFTY :  7363, 7330, 7295,7244

DAILY CHART FOR NIFTY

Sensex opened the week at 24400, made a high of 24563, low of 23839 and closed the week at 24435. Thus it closed the week with a minor loss of 20points. At the same time the Nifty opened the week at 7420, made a high of7470, low of 7241 and closed the week at 7422. Thus the Nifty closed the week with a loss of 15 points.

SUPPORT AT GOLDEN RATIO.

As envisioned last week, the bears attacked the small and midcap universe with full force. As a result the small and midcap stocks lost heavily, with many losing around 10 to 20%. After losing considerably in the initial part of the week, both Sensex and Nifty recovered smartly after finding support at the golden ratio target (Sensex 23846 and Nifty 7292).

NIFTY FUTURE AS PER TECHNICAL,

On the weekly charts, both the indices have formed a Doji formation. It is aBullish Doji pattern which requires confirmation in the form of a white body candle next week. On daily charts, both the indices completed a Tweezer Bottom on Thursday and followed that with a real white body candle. Thus daily and weekly candlestick study indicates bullish bias in the near term.

Considering the rally from Sensex 25287 to 27618 and Nifty from 7691 to 8336, the golden ratio of this rally falls at Sensex 23846 and Nifty 7292. The relevant Retracement levels are 24740-25018-25297  for the Sensex and 7520-7607-7693 for the Nifty.

In the higher timeframe, both the indices are retracing the strong long term upward rally which started from Sensex 17448 and Nifty 5118. The relevantCorrection levels are placed at Sensex 25220-23736-22252 and Nifty 7591-7119-6646.

Despite taking support at the golden ratio this week, both the indices remain on course to achieve the recent Bearish Head and Shoulders pattern target which is at Sensex 23276 and Nifty 7092. Also the higher degree Head and Shoulders still holds good, the target for which falls at Sensex 22552 and Nifty 6741.MACD and Price ROC are both negative and continue in Sell mode. RSI (40) suggests bearish momentum. Thus majority of Oscillators are suggesting a bearish bias in the near term.