NIFTY CHART & NIFTY WEEKLY REPORT FOR UPCOMING WEEK 08 FEB 2016

WEEKLY RESISTANCE FOR NIFTY: 7562, 7625, 7678, 7731

PIVOT POINT: 7500

WEEKLY SUPPORT FOR NIFTY :  7447, 7394, 7331,7269

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 7524, 7557, 7576,7595

PIVOT POINT: 7491

DAILY SUPPORT FOR NIFTY :  7472, 7453, 7420,7387

DAILY CHART FOR NIFTY

Sensex opened the week at 24982, made a high of 25002, low of 24187 and closed the week at 24616. Thus it closed the week with a loss of 254 points. At the same time the Nifty opened the week at 7589, made a high of 7600, low of 7350 and closed the week at 7489. Thus the Nifty closed the week with a loss of 74 points.

NIFTY FUTURE AS PER TECHNICAL,

CANDLESTICK VIEW: On the daily charts, both the indices have formed a real White body candle. On the weekly charts both the indices have formed a Black body candle with a long lower shadow. Interestingly it falls short of being a Dark Cloud Cover. Thus daily candlestick study indicates a minor bullish bias in the near term.

Current price movement can be termed as a consolidation or a Relief rally and it is correcting the recent fall from 7972 to 7241 for the Nifty. The relevant Retracement levels are 7520-7607-7693 for the Nifty. Despite the current Relief rally, both the indices remain on course to achieve the recent Bearish Head and Shoulders pattern target which is at Nifty 7092. Also the higher degree Head and Shoulders still holds good, the target for which falls at Nifty 6741.

MACD continues in Buy mode despite being in the negative zone. Price ROC is negative and continues in Sell mode. RSI (47) indicates bearish momentum. This week, both the indices continuously tested the short term average of 20dma Nifty – 7456 and closed the week just above it. However, both Nifty continue to remain below the medium term average of 50dma Nifty – 7668 and even the long term average of 200dma Nifty – 8057. Thus the trend in the short term timeframe has turned bullish, whereas the trend in the medium term and long term timeframe continues to remain bearish.

SELL ON RISE

Even though the positive price movement of the indices made sure that the short term trend has turned positive but the fact remains that the medium and long term trend still remains bearish. Even though further pull-backs cannot be ruled out, studies clearly point towards formation of short positions at every rise. Thus market participants should keep in mind that the market still remains a Sell on Rise and should create short positions at every increment.