NIFTY WEEKLY REPORT FOR 18 JULY TO 22 JULY 2016

WEEKLY RESISTANCE FOR NIFTY: 8580, 8632, 8661, 8689

PIVOT POINT: 8527

WEEKLY SUPPORT FOR NIFTY :  8499,8470,8418,8364

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8580, 8599, 8620,8641

PIVOT POINT: 8562

DAILY SUPPORT FOR NIFTY :  8541, 8520, 8500, 8483

DAILY CHART FOR NIFTY

Sensex opened the week at 27208, made a high of 28039, low of 27047 and closed the week at 27852. Thus it closed the week with gain of 726 points. At the same time the Nifty opened the week at 8432, made a high of 8604, low of 8422  and closed the week at 8557. Thus it closed the week with gain of 227 points. The Indian stock market closed lower on Friday with the Nifty closing above the 8550 mark. The benchmarks under-performed the Asian peers, as index heavyweight Infosys posted disappointing results and slashed revenue forecasts. 

CONSOLIDATION AUGURS WELL FOR BULLS.

In a Bull market, it is normal to have a consolidation after a sharp upward move (more than 227 points on Nifty in 6 trading sessions). The current consolidation augurs well for the Bulls, as it will provide adequate strength to the Bulls to challenge the immediate short term top (Nifty 8600) and then continue with its upward journey. One positive aspect for the week was the Sensex closing above the strong Retracement level of 61.8% i.e. 27852 for three trading sessions. As long as it trades above this level, one can expect the indices to challenge their life time highs.

Continue Holding Long Positions till NIFTY HOLD 8500 Technically, Indian Stock Market is still in positive zone. Market would see further positive momentum. Nifty possess final strong resistance at 8635, closing above these levels would force market to see new highs in days to come. 8500 would act as very strong support for Nifty, so traders can hold long positions with stoploss below 8500 levels for Nifty. then nifty would see another 100-200 points on upside in a days to come. At this point we would recommend lightening your long positions. And if nifty closes above 8635 then it would be better to long via nifty calls rather to take big position in nifty future.

TECHNICALLY SPEAKING Indian Stock Market is still in positive zone. Market may see some profit booking today due to Friday and heavyweight Infosys posted disappointing results and slashed revenue forecasts. 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 8650-8700 for Nifty. If upcoming results support then this positive movement would continue till 8700 levels for Nifty The only strategy for the traders should be to hold long positions or initiate fresh long positions at every dip in the market. and 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. Since, MACD and Price ROC are both positive and have signaled a fresh Buy. RSI (70) indicates bullish momentum. A strong break below 8500 will increase the downside pressure and drag it to 8400/8300. Traders can go short on a break below 8500.On the other hand, a decisive break above 8635 will ease the downside pressure and take the index futures higher to 8650 and 8700 thereafter.

This week, both the indices managed to close above the short term average of 20dma Nifty – 8350, medium term average of 50dma Nifty 8154  and even the long term average of 200dma Nifty 7941. Thus the trend in the short term, medium term and the long term timeframe has turned Bullish.