NIFTY WEEKLY REPORT FOR 27 JUNE TO 01 JULY 2016

WEEKLY RESISTANCE FOR NIFTY: 8194, 8357, 8395, 8432

PIVOT POINT: 8231

WEEKLY SUPPORT FOR NIFTY :  8156,8093,8030,7930

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8186, 8273, 8356,8442

PIVOT POINT: 8100

DAILY SUPPORT FOR NIFTY :  8049, 8015, 7929, 7870

DAILY CHART FOR NIFTY

Sensex opened the weekat 26689, made a high of 27027, low of 25931 and closed the week at 26397. Thusit closed the week with a loss of 128 points. At the same time the Nifty openedthe week at 8106, made a high of 8307, low of 7927  and closed theweek at 8075. The Indian equity market ended with sharp cuts on Friday, 24 June2016  after Britain voted to leave theEuropean Union fuelling a wave of global uncertainty. Nifty opened with a hugegap down with breaching past the 7950 mark , Nifty ended over 2% lower afterwitnessing a sharp recovery from day's low. while Sensex tumbled over 1000points. However, benchmarks began staging a smart come back in the second half.

Worst day in 10 months as Wall Street reacts TO BREXIT.

The Dow Jones industrial average fell611.21 points, or 3.39 percent, to 17,399.86, the S&P 500 lost 76.02points, or 3.6 percent, to 2,037.3, and the Nasdaq Composite dropped 202.06points, or 4.12 percent, to 4,707.98.The week was extremely news heavy,starting from Rexit to BRexit; the Indian stock market had to deal with highdegree of uncertainty and Volatility. The market was taken by surprise on theissue of UK exit, which it had not discounted for. As a result, there wasbloodbath on the streets as the Sensex lost more than 1000 points in intradaybefore recovering more than 450 points from the lows of the day. The indiceshave taken support at the Bullish Gap between Nifty 7948-7941. Any closingbelow this Gap will open the doors for further fall.

TECHNICALLY SPEAKING

Expectations of a good monsoon have once again reinforced the confidence among market participants that the growth may come back on a good note, Timely onset of the monsoons will be a positive for the markets. A strong break below 7900 will increase the downside pressure and drag it to 7850/7700. Traders can go short on a break below 7900.On the other hand, a decisive break above 8100 will ease the downside pressure and take the index futures higher to 8300 and 8450 thereafter. Overall Market has seen a breakout and we would see sharp positive movements in days to come. Since, MACD and Price ROC both continuein Sell mode. RSI (48) has given a fresh Sell and indicates bearish momentum.Stochastic Oscillator %K (61) is in Sell mode as it is below %D. MFI (55) suggestsPositive Money Flow. Thus majority of Oscillators are suggesting a bearishbias in the near term.

This week, both the indices managed to closeabove the short term average of 20dma Nifty – 8191, medium term average of50dma Nifty – 7995 and even the long term average of 200dma Nifty – 7780. Thusthe trend in the short term, medium term and the long term timeframe has turned Bullish.

WEEKLYCANDLESTICK: WHITE OPENING MARUBOZU

The candlestick is generally bullish. However, its position within thebroader technical picture is also important. It may show a potential turningpoint and that prices have reached a support level after an extended decline(Bullish Belt Hold Pattern). If it is seen after a long and significant rally,it may point to excessive bullishness.

DAILYCANDLESTICK: BULLISH MORNING STAR

The Bullish Morning Star starts with a black candlestick and it should continue with a short candlestick (white or black) that opens with a gap down. The white candlestick appearing on the third day should open at or higher than the lowest level of the body of the second candlestick, and it should close well into the black candlestick that appears at the beginning of the pattern. The extent of how high this candlestick must close is defined according to the other candlesticks belonging to the pattern. 

               An uptrend is being observed, and the white candlestick confirms thecontinuation of the uptrend. The appearance of the short candlestick that makesa gap indicates that bulls are still pushing up the price. On the daily charts, both Nifty have made a white opening marubozu formation. Onthe weekly, charts both the indices have formed a bullish morning star.Thus both daily and weekly formations are neutralin nature and hence further direction can only be had from Monday’s candleformation