11 June 2016

NIFTY WEEKLY REPORT FOR 13 JUNE TO 17 JUNE 2016

WEEKLY RESISTANCE FOR NIFTY: 8256, 8285, 8330, 8375
PIVOT POINT: 8228
WEEKLY SUPPORT FOR NIFTY :  8183,8138,8109,8007

WEEKLY CHAT FOR NIFTY


















DAILY RESISTANCE FOR NIFTY: 8245, 8269, 8322,8344
PIVOT POINT: 8220
DAILY SUPPORT FOR NIFTY :  8183, 8145, 8121, 8096
DAILY CHART FOR NIFTY

















Sensex opened the week at 25150, made a high of 27009, low of 23002 and closed the week at 26763. Thus it closed the week with a loss of 80 points. At the same time the Nifty opened the week at 8248, made a high of 8318, low of 8171  and closed the week at 8190. "Markets exhibited a burst of volatility intraday on Friday, the indices rallied to the 8,300 levels after opening flat for the day, this upmove sharply reversed to take the markets lower for the day all the way to the 8,170 levels.
key events  
June 15:

FOMC Meeting
Two-day meeting, June 14-15,2:00 p.m. ET
Industrial Production and Capacity Utilization - G.17 ,9:15 a.m. ET
In overseas stock markets, Asian and European shares edged lower on concerns about global economic slowdown and concerns over the 23 June 2016 referendum that could see Britain exit the European Union. Earlier this week, the World Bank revised its global economic growth forecast for calendar year 2016 to 2.4% from the 2.9% projection in January. Key indices in UK, Germany and France dropped by between 1.68% to 2.25%. The UK government holds a referendum on 23 June 2016 on whether the country should remain a member of the EU. The Organization for Economic Cooperation and Development (OECD) has warned that Britain's leaving the EU the so-called Brexit could send shocks through global financial markets. Brexit would lead to economic uncertainty and hinder trade growth, with global effects being even stronger if the British withdrawal from the EU triggers volatility in financial markets.
Market In Correction Mode, Would Resume Uptrend After a Sufficient Correction
8180 would act as immediate support for Nifty, breaching which Nifty would fell down sharply but it would be temporary in nature. 8000 would be very hard to breach. Market is expected to see some correction before further positive movement. Once that correction is done in next few days, market would stabilize and resume its positive movement. Nifty would see strong support at 8180-8165-8098-8007 whereas strong resistance would be seen at 8252-8294-8336-8385 levels.
SLUGGISHNESS ON DAILY & WEEKLY CHARTS NIFTY FAILS TO CLOSE ABOVE 8250.
After giving a strong breakout in the previous week, market was expected to show strong momentum. Instead the market became sluggish as it failed to overcome the critical level of 61.8% Retracement i.e. Nifty 8243. Bullish momentum will be witnessed as soon as both the indices close above these levels. The failure to do so in the week gone by, has resulted in mid-caps losing momentum. One should not be surprised by short term down moves towards strong Support Gap of 7948 – 7941. Technically, Indian Stock Market is still in positive zone. Some correction would be seen. This weakness in the markets could be on the back of fatigue which the markets have been exhibiting over the last couple of days, post the rally we had witnessed hitherto. Technically the markets still look to be in a overall uptrend and weathering the short term volatility could prove prudent. We continue to hold a bullish outlook on the markets and would recommend adding allocation to equities at this juncture."

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