PIVOT
POINT: 8176
PIVOT
POINT: 8155
Sensex
opened the week at 25735, made
a high of 27020, low of 23002 and closed the week at 26525. Thus
it closed the week with a loss of 80 points. At
the same time the Nifty opened the week at 8124, made
a high of 8232, low of 8076 and closed the week at 8163. "Supported
by global markets’’ rebound after being
on the back foot through the week, Indian stocks opened positive.The
Indian equity market closed
with modest gains on Friday amid a choppy session. Indices managed to
clock in marginal gains tracking positive global cues.
As
expected the market was extremely sluggish throughout the week. closing
below 61.8% Retracement of Nifty i.e. 8243, This is not a sign of reversal; it
is just a consolidation
to gather strength; which will help the Bulls to overcome the above mentioned critical
level. In
the near term, expect strong support at the Bullish Gap between 7948-7941.
The
market has settled in a small range of Nifty 8050 on the lower side and 8300 on
the higher side. Weekly movement on the indices has been zero, but
that does not depict the real picture. Global concerns are weighing heavy on
the market and as a result Volatility has
been on an upswing. Interestingly, both Sensex and Nifty took support at the
short term moving average
of 20dma, for all days of the past week. A close below the 20dma will pave the
way for the indices to test the strong support at the Bullish Gap between Nifty
7948-7941.
This
week, both the indices managed to close above the short term average of 20dma Nifty
– 8050, medium term average of 50dma Nifty
– 7932 and even the long term average of 200dma Nifty – 7770. Thus the
trend in the short term, medium term and the long term timeframe has turned
Bullish.RSI (58) indicates bullish momentum. MFI
(55) suggests Positive Money Flow. Thus majority of Oscillators are suggesting
a bullish bias in the near term. A
break of the 20dma will not only turn the short term to Bearish, but will open
the door to sub-8000 levels and a testing of the Bullish Gap between Nifty
7948-7941. On
the other hand, a decisive break above 8245 will ease the downside pressure and
take the index futures higher to 8350 and 8400 thereafter.If global cues
support then this positive movement would continue till 8500 levels for Nifty.
8050
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 8150-8111-8050-7999 whereas strong resistance would
be seen at 8245-8294-8342-8395 levels.
An
uptrend is being observed, and the white candlestick confirms the continuation
of the uptrend. The appearance of the short candlestick that makes a gap
indicates that bulls are still pushing up the price. On the daily charts, both Nifty have made a Doji formation. On the weekly charts,both
the indices have formed a small White body candle. Thus both daily and
weekly formations are neutral in nature and hence further direction can only be
had from Monday’s candle formation. Thus daily as well as weekly candlestick
patterns suggest indecisiveness.
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. 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 Brexitcould
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.
No comments:
Post a Comment