NIFTY WEEKLY REPORT FOR 04 JULY TO 08 JULY 2016

WEEKLY RESISTANCE FOR NIFTY: 8297, 8380, 8428, 8476

PIVOT POINT: 8214

WEEKLY SUPPORT FOR NIFTY :  8166,8118,8035,7952

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8367, 8378, 8388,8398

PIVOT POINT: 8356

DAILY SUPPORT FOR NIFTY :  8346, 8336, 8325, 8312

DAILY CHART FOR NIFTY

Sensex opened the weekat 25623, made a high of 27020, low of 23002 and closed the week at 26999. Thusit closed the week with a loss of 128 points. At the same time the Nifty openedthe week at 8050, made a high of 8377, low of 8048  and closed theweek at 8358. Stock market in India ended in the green for fifth consecutivetrading session. Healthy macro-economic data and positive global cues liftedthe indices to close higher on Friday.

Healthy macro-economic data 

The manufacturingPurchasing Managers’ Index (PMI) data released on Friday showed a rise of 51.7%in June from May’s 50.7%. On the economy front, India’s eight core sectors grewat only 2.8% in the month of May. The combined Index of Eight Core Industriesstands at 183.7 in May, 2016, which was 2.8% higher compared to the index ofMay, 2015. Its cumulative growth during April to May, 2016-17 was 5.5 %.India’sfiscal deficit during April-May at Rs.2.28 lakh crore touched 42.9% of theBudget estimates for fiscal 2016-17, as compared to the 37.5% it had reached inthe same period a year ago, as per government data.

Market To See Breakout If Nifty Holds 8300

Indian Stock Marketwould open flat. Technically, Indian Stock Market is still in positive zone.Today, it looks like market may see a breakout and breach levels of 8300 forNifty. Some correction may be seen near these levels but breaching theseresistance levels with volumes would force market to see further positiverally. Traders are suggested to hold long positions or buy at dips in thismarket. Breaching 8300 for Nifty with volumes would force market to see 8440levels in upcoming days. Nifty closes above 8300 levels then Market wouldconfirm a long Inverse Head and Shoulder Pattern with the targets of 8450-8500for Nifty.

TECHNICALLY SPEAKING

The only strategy for the traders should be to hold long positions or initiate fresh long positions. A strong break above 8300 will ease the downside pressure and take the index futures higher to 8350 and 8400 thereafter. Market may see flat movement today due to Friday but that would be temporary in nature. Overall Market has seen a breakout and we would see sharp positive movements in days to come. Next target is 8300-8350 for Nifty. Expectations of a good monsoon have once again support this positive movement would continue till 8500 levels for Nifty . Since, MACD and Price ROC are both positive and have signaled a fresh Buy. RSI (60) indicates bullish momentum. 

This week, both the indices managed to closeabove the short term average of 20dma Nifty – 8170, medium term average of50dma Nifty – 8030 and even the long term average of 200dma Nifty – 7900. 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. Thus both daily andweekly formations are neutral in nature and hence further direction can only behad from Monday’s candle formation