NIFTY WEEKLY REPORT FOR 25 JULY TO 29 JULY 2016

WEEKLY RESISTANCE FOR NIFTY: 8564, 8591, 8627, 8666

PIVOT POINT: 8538

WEEKLY SUPPORT FOR NIFTY :  8499,8466,8439,8413

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8557, 8575, 8587,8599

PIVOT POINT: 8538

DAILY SUPPORT FOR NIFTY :  8526, 8514, 8496, 8477

DAILY CHART FOR NIFTY

Sensex opened the week at 27938, made a high of 28027, low of 27641 and closed the week at 27710. Thus it closed the week with loss of 142 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. Markets recouped on friday losses to end marginally higher on reports that the GST constitutional amendment bill has been listed for discussion in the Rajya Sabha next week.

BIAS REMAINS POSITIVE.

Last week was a ‘nothing’ week as the indices continued to trade in a very narrow range. Nifty continues to move in a small range (8594-8476) of just 118 points. This can be termed as a Consolidation with a bullish bias. A narrow range seems like a precursor of a bigger move which is likely to follow. A break on the lower side of the range will lead the Nifty to test the weekly Bullish Gap between 8407-8398; whereas a bullish breakout to the trading range will lead the Nifty towards the Flag target of 8869.

TECHNICALLY SPEAKING

Indian Stock Market is still in positive zone. Since,  MACD and Price ROC both are positive and continue with their Buy signals. RSI (65) suggests bullish momentum. Stochastic Oscillator %K (82) is in Sell mode as it is below %D. ADX has improved to 23 which suggest that Uptrend is getting developed. Directional Indicators continue in Buy mode as +DI is above –DI. MFI (49) suggests Negative Money Flow. Thus majority of Oscillators are suggesting a bullish bias in the near term.This week, both the indices continued to remain well above the short term average of 20dma (Sensex – 27348 and Nifty – 8388), medium term average of 50dma (Sensex – 26757 and Nifty – 8202) and even the long term average of 200dma (Sensex – 25696 and Nifty – 7831). Thus the trend in the short term, medium term and the long term timeframe continues to remain Bullish.

On the weekly charts, both Sensex and Nifty have made a small Black bodyStar which is a neutral formation. On the daily charts, both the indices have formed a Bullish Harami pattern, which is a Bullish Reversal pattern. But in this case, it will have little significance as it has formed in a sideways consolidation. Thus daily as well as candlestick analysis suggests a consolidation in the near term with a bullish bias.