NIFTY CHART & NIFTY WEEKLY REPORT FOR UPCOMING WEEK 15 FEB 2016

WEEKLY RESISTANCE FOR NIFTY: 7263, 7361, 7545, 7729

PIVOT POINT: 7165

WEEKLY SUPPORT FOR NIFTY :  6981, 6797, 6699,6601

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 7011, 7094, 7132, 7381

PIVOT POINT: 6966

DAILY SUPPORT FOR NIFTY :  6928, 6890, 6845, 6800

DAILY CHART FOR NIFTY

NIFTY FUTURE AS PER TECHNICAL

Sensex opened the week at 24637, made a high of 24698, low of 22600 and closed the week at 22986. Thus it closed the week with a massive loss of 1630 points. At the same time the Nifty opened the week at 7489, made a high of 7512, low of 6869 and closed the week at 6980. Thus the Nifty closed the week with a loss of 509 points.

NIFTY BELOW 7000.

It is a harsh reality that the market is now realizing, as the Sensex slides below 23000 and Nifty below 7000; thereby undoing all the good work done on the indices over a period of past 18 months. The ferocious selling by the bears continues unabated as the Nifty lost more than 500 points and Sensex over 1600 points for the week.

IS IT THE END OF BEAR MARKET?

The question on every market participants mind remains - Is it the end of Bear Market? The answer sadly is in the negative. The Bear market will continue as we are yet to reach the potential targets of Nifty 6741- 6646. But that does not rule out the possibility of a Corrective rally in the Downtrend. This week, both the indices have taken support at the 200 WMA(Sensex 22824 and Nifty 6874. The last time this average was breached, was way back in December 2011. This is all the more reason for the Corrective rally to commence in the near term, but one should remember that all rallies will be sold into.

NIFTY FUTUE AS PER TECHNICAL

On the daily charts, both the indices have formed a small black body Spinning Top with a long lower shadow which indicates buying at lower levels. Both Sensex and Nifty completed a Homing Pigeon pattern on Friday which is a bullish reversal pattern, requiring confirmation. On the weekly charts both the indices formed a big black body candle in line with the downtrend. Thus daily candlestick study indicates a bullish bias whereas the weekly study does not confirm with that view.As both the indices have formed a bullish candle stick pattern after taking support at the 200 WMA, one cannot rule out a possibility of a bounce back. The relevant Retracement levels are 7148-7235-7321 for the Nifty.

The Bearish Gap between 7323-7363 for the Nifty will act as a strong Resistance zone going forward as it also includes the 61.8% Retracement level .This week, both the indices closed below the short term average of 20dma Nifty 7360. Nifty continue to remain below the medium term average of 50dma Nifty 7611 and even the long term average of 200dma Nifty – 8034. Thus the Pull-Back rally is unlikely to cross this Resistance zone.

This week, both the indices achieved the Bearish Head and Shoulders (daily chart) target of Nifty 7092. Nifty remain on track to achieve the higher degree Head and Shoulders (weekly chart), the target for which falls at Nifty 6741.MACD and Price ROC are both negative and continue in Sell mode. RSI (28) and Stochastic Oscillator %K (9) are in oversold zone. Thus the trend in the short term timeframe has turned bearish, whereas the trend in the medium term and long term timeframe continues to remain bearish.