NIFTY CHART & NIFTY WEEKLY REPORT FOR UPCOMING WEEK 11 JAN 2016

WEEKLY RESISTANCE FOR NIFTY: 7972, 8003, 8089, 8175

PIVOT POINT: 7917

WEEKLY SUPPORT FOR NIFTY :  7886, 7831, 7745,7659

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 7896, 7921, 7960,8009

PIVOT POINT: 7862

DAILY SUPPORT FOR NIFTY :  7837, 7820, 7773,7744

DAILY CHART FOR NIFTY

Sensex opened the week at 26116, made a high of 26116, low of 24825 and closed the week at 24934. Thus it closed the week with a loss of 1226 points. At the same time the Nifty opened the week at 7934, made a high of 7947, low of 7570 and closed the week at 7605. Thus the Nifty closed the week with a loss of 362 points.

GLOBAL CRACK DUE TO CHINESE CONCERNS.

China sparked off a global scare when the trading in Chinese stock market was halted twice this week. The New Year 2016 could not have a worse start than this. The global meltdown has assured that majority of the world markets have entered or are entering a Bear phase. Thus this week’s low which is very near to the critical intermediate bottom i.e. Nifty 7539 levels, assumes tremendous significance. A break below this level will pave the way for Nifty targets of 7092 and 6741.

NIFTY FUTURE AS PER TECHNICAL,

On the weekly charts, both the indices have formed a big black body candle which is like Fooling Three Soldiers. It is a bearish continuation pattern which has undone the bullish work of last three weeks with a single black body candle. On the daily charts both the indices have formed a small black body Spinning Top but when compared with last two days formation, it looks like a Homing Pigeon. This is a bullish reversal pattern but which requires confirmation. Thus weekly candlestick pattern suggests a bearish bias.

On the lower side, the market is at a very crucial juncture, as the strong Support Zone between Sensex 24833-24867 and Nifty 7539-7551 is being tested again. This zone has supported the market twice before and hence a breach of this strong Support Zone will easily lead the Nifty to sub-7000 levels.

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.