NIFTY WEEKLY REPORT FOR 11 JUNE TO 15 JUNE 2016

WEEKLY RESISTANCE FOR NIFTY: 8386, 8405, 8429, 8452

PIVOT POINT: 8367

WEEKLY SUPPORT FOR NIFTY :  8344,8320,8300,8882

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8347, 8365, 8376,8388

PIVOT POINT: 8330

DAILY SUPPORT FOR NIFTY :  8318, 8307, 8289, 8272

DAILY CHART FOR NIFTY

Sensex opened the week at 27169, made a high of 27360, low of 27047 and closed the week at 27126. Thus it closed the week with a loss of 127 points. At the same time the Nifty opened the week at 8385, made a high of 8415, low of 8295  and closed the week at 8242. Thus the Nifty closed the week with a loss of 10 points. The Indian equity market ended with marginal losses on Friday amid another lackluster day of trades. Weak global cues and profit booking saw the indices close with minor losses. Once again indices were unable to find a specific direction for second consecutive day. 

NEXT WEEK CRITICAL FOR THE MARKET.

As expected the market went just up to the Resistance zone of 8360-8379 for the Nifty and stopped. This Resistance zone holds great significance as it is not just a Resistance zone but it also defines the long term trend of the market. The neutral candlestick formations of last week have done little to instill confidence in the bulls. Thus coming week will be a critical test for the market not only for the bulls but for the market itself.

TECHNICALLY SPEAKING

Technically, Indian Stock Market is still in positive zone. Market is in consolidation range. Market has formed Doji Pattern. Now if Nifty breaches levels of 8360 then it can see some further correction that can take Nifty to 8280-8250 levels. Overall Market is positive but some further correction can’t be ruled out before next positive movement. Traders can go short in the market if Nifty breaches levels of 8295 with stop loss of 8365 levels on spot basis. Breaching levels of 8360 on the positive side would force market to see further positive movement. 

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 close above the short term average of 22 dma Nifty – 8240, medium term average of 55 dma Nifty – 8080 and even the long term average of 200 dma Nifty – 7911. Thus the trend in the short term, medium term and the long term timeframe has turned Bullish.

WEEKLYCANDLESTICK: doji STAR

On the daily charts Nifty have formed a Doji formation, which is second consecutive neutral formation over past two days. On the weekly charts, both the indices have formed a small black body Star formation. Thus the daily as well as weekly candlestick pattern is suggesting a pause in the upward movement.