NIFTY CHART & NIFTY WEEKLY REPORT FOR UPCOMING WEEK 28 MARCH 2016

WEEKLY RESISTANCE FOR NIFTY: 7572, 7610, 7700, 7802

PIVOT POINT: 7522

WEEKLY SUPPORT FOR NIFTY :  7490,7455,7385,7280

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 7652, 7695, 7720, 7820

PIVOT POINT: 7592

DAILY SUPPORT FOR NIFTY :  7555, 7490, 7452, 7455

DAILY CHART FOR NIFTY

Sensex opened the week at 25007, made a high of 25381, low of 24988 and closed the week at 25337. Thus it closed the week with a loss of 385 points. At the same time the Nifty opened the week at 7619, made a high of 7728, low of 7617 and closed the week at 7716. Thus the Nifty closed the week with a gain of 112 points.

NIFTY HALTS AT RESISTANCE ZONE.

Both the indices continued their upward march and managed to test and close within the Bearish Falling Gap between Nifty 7674-7721. Even though the short term and intermediate term trend remains positive, it seems that the indices are getting fatigued and might consolidate first before continuing further. In such a scenario, the small and midcap stocks are more likely to outperform the chief indices in the near term.

NIFTY FUTURE AS PER TECHNICAL

The Pull-Back has got extended, so besides reaching primary Gap Theory Target of Sensex 25370 and Nifty 7718 as mentioned above, both the indices have also concurrently run into higher Bearish Gap between Sensex 25230-25357 and Nifty 7674-7721. This Gap is now acting as strong Resistance.

The market is in midst of a strong Pull-Back rally of the fall from Nifty from 8336. The relevant Retracement levels for are placed at Nifty 7403-7581-7759. Currently, both the indices are testing the critical 61.8% Retracement level which is at Nifty 7759. Any closing above this level will lead the indices towards testing the 200dma.

MACD and Price ROC both are positive and continue with their Buy signals. RSI (67) suggests Bullish Momentum. ADX has dropped further to below 20 and is at 18, suggesting that the prior Down-Trend has lost all its strength. This week, both the indices managed to stay and close above the short term average of 20dma Nifty – 7416 and even the medium term average of 50dma Nifty – 7364. and Nifty still continue to remain well below the long term average of 200dma Nifty – 7902. Thus, the trend in the short term and medium term timeframe is positive whereas the trend in the long term timeframe remains bearish.

WEEKLY CANDLESTICK:

On the daily charts, both the indices have formed a Doji on Wednesday. This is the second successive neutral formation in past two days, which points towards Bearish reversal provided one gets a bearish confirmation on coming Monday. On the weekly charts, both the indices opened with an upward Gap and formed an Opening white body Marubuzo, which indicates continuation of Bullishness. Thus candlestick pattern study indicates a bullish bias.This week has seen Nifty registering a Bullish Upward Gap between Nifty 7613-7617, not only on the daily chart but even on weekly chart. This Gap is likely to act as strong support. Besides the above Gap, Nifty have also left behind two Bullish Rising Gaps first between Nifty 7308-7235 and second between Nifty 7380-7406. Both these Gaps will not only provide support but are also Measuring Gaps. The relevant primary Target as per Gap Theory falls at Nifty 7718 and secondary Target is at Nifty 7961.