NIFTY CHART & NIFTY WEEKLY REPORT FOR UPCOMING WEEK 29 FEB 2016

WEEKLY RESISTANCE FOR NIFTY: 7163, 7260, 7358, 7506

PIVOT POINT: 7062

WEEKLY SUPPORT FOR NIFTY :  6964, 6867, 6816, 6766

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 7071, 7092, 7108, 7199

PIVOT POINT: 7049

DAILY SUPPORT FOR NIFTY :  7017, 6996, 6974, 6936

DAILY CHART FOR NIFTY

Sensex opened the week at 23688, made a high of 23726, low of 22967 and closed the week at 23154. Thus it closed the week with a lose of 534 points. At the same time the Nifty opened the week at 7061, made a high of 7275, low of 6987 and closed the week at 7055. Thus the Nifty closed the week with a lose of 68 points. Nifty started off March series on a positive note after losing 6 percent each in previous two series (January and February), up 59.15 points or 0.85 percent to 7029. Sensex climbed 178.30 points or 0.78 percent to 23154.

NIFTY FUTURE AS PER TECHNICAL

The market snapped three-day losing streak with the Sensex rising more than 250 points intraday Friday, the last trading session before Union Budget announcement. Along with short covering & positive global cues, likely achievement of FY16 fiscal deficit target of 3.9 percent and early recapitalization of banks boosted investors' sentiment ahead of Budget. This week, both the indices closed below the short term average of 22 dma Nifty 7227. Nifty continue to remain below the medium term average of 50dma Nifty 7435 and even the long term average of  200dma Nifty – 7061. 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 7400. 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 (40).
WEEKLY CANDLESTICK: BULLISH AFTER BOTTOM GAP UP

The first two black days and the gapping down third black day create a market with an extended downtrend. The fourth day is a strong white day that shows there might finally be some weakness in the decline. The fifth day gaps up and closes near its highs creating a strong white candlestick. It now appears that the market overextended itself to the downside and a reversal of the prior trend has begun.

BUY / STOP LOSS LEVELS

The confirmation level is defined as the last close. 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.