NIFTY CHART & NIFTY WEEKLY REPORT FOR UPCOMING WEEK 22 FEB 2016

WEEKLY RESISTANCE FOR NIFTY: 7207, 7287, 7385, 7514

PIVOT POINT: 7127

WEEKLY SUPPORT FOR NIFTY :  7029, 6949, 6869, 6740

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 7220, 7243, 7263, 7324

PIVOT POINT: 6197

DAILY SUPPORT FOR NIFTY :  7178, 7158, 7135, 7068

DAILY CHART FOR NIFTY

This week Nifty close with rose 0.26 percent to 7,210.75, recovering from an earlier fall of as much as 0.6 percent to end not far from the session's high of 7,226. The benchmark Sensex rose 0.25 percent to close at 23,709. The Sensex and Nifty ended Friday's lacklustre trading session marginally higher on the back of buying. The Sensex opened at 23,640, touched an weekly high of 23,709 and low of 23,600. It finally ended with a gain of 60 points at 23,709.This weekly Nifty opened at 7,174 hitting a high of 7,236 and low of 6967, before ending with a gain of 20 points at 7,205.

NIFTY FUTURE AS PER TECHNICAL

This week, both the indices closed below the short term average of 22 dma Nifty 7302. Nifty continue to remain below the medium term average of 50dma Nifty 7500 and even the long term average of 200dma Nifty – 7880. Thus the Pull-Back rally is unlikely to cross this Resistance zone. This week, both the indices achieved the Bullish Head and Shoulders (daily chart) target of Nifty 7300. Nifty remain on track to achieve the higher degree Head and Shoulders (weekly chart), the target for which falls at Nifty 7000 MACD and Price ROC are both negative and  RSI (36).

WEEKLY CANDLESTICK:

The Bullish Harami is a sign of disparity in the market’s health. The market is characterized by a downtrend and a bearish mood, and there is heavy selling reflected by a black body, which further supports the bearishness. However, the next day prices open higher or at the close of the preceding day and the short traders are alarmed. This leads to the covering of many short positions, causing the price to rise further. The latecomers short the trend they missed the first time, and slow down the rise. Thus, a small white body is formed. This may signal a trend reversal since the second day’s small real body shows that the bearish power is diminishing.

Buy/Stop Loss Levels

The confirmation level is defined as the last close or the midpoint of the first black body, whichever is higher. Prices should cross above this level for confirmation.The stop loss level is defined as the lower of the last two lows. Following the BUY, if prices go down instead of going up, and close or make two consecutive daily lows below the stop loss level, while no bearish pattern is detected, then the stop loss is triggered.