WEEKLY
RESISTANCE FOR NIFTY: 8670, 8711, 8770, 8829
PIVOT
POINT: 8629
WEEKLY
SUPPORT FOR NIFTY : 8570,8511,8470,8429
WEEKLY CHAT FOR NIFTY
DAILY RESISTANCE FOR NIFTY: 8711, 8733, 8746,8760
PIVOT
POINT: 8689
DAILY
SUPPORT FOR NIFTY : 8675, 8662, 8640, 8630
DAILY
CHART FOR NIFTY
Sensex
opened the week at 28133, made a high of 28276, low of 27645 and closed the
week at 28078. Thus it closed the week with gain of 248 points. At the same
time the Nifty opened the week at 8625, made a high of 8747, low of 8547
and closed the week at 8594. Trading for the week ended on a buoyant note as
key benchmark indices settled with strong gains as firmness in global stocks
boosted sentiment on the domestic bourses. The barometer index, the S&P BSE
Sensex rose 363.98 points or 1.31% to settle at 28,076.26. The gains for the
Nifty 50 index were higher than those for the Sensex in percentage terms. The
Nifty gained 132.05 points or 1.54% to settle at 8,683.15. The Sensex settled
above the psychologically important 28,000 level after alternately moving above
and below that mark earlier during the day after crossing that mark in
mid-morning trade. The Sensex hit more than one-week closing high and the Nifty
hit highest closing level in almost sixteen months.
GST – A REALITY; FINALLY
History was created when the Rajya Sabha cleared the historic GST
bill on Wednesday. It resulted in profit booking as both the indices came
crashing down. Followers of Classical theory were not surprised as the profit
booking witnessed in the market only underlined the principle that ‘Price
Discounts Everything’. The ‘Sell on News’ phenomena continued till Thursday
before the market staged a strong comeback on Friday. Strong Support exists at
the first Bullish Gap between 8479-8475 for the Nifty; as long as this support
holds one can expect Nifty to reach the Flag target of 8869.
A bullish breakout was
observed last week as the Nifty moved well above the 8600 mark. As a result of
this, Nifty is now headed towards the Flag pattern target of 8869. The coming
week is likely to see high degree of Volatility as the Government will grapple
to pass the GST bill. The probability of getting the bill passed has increased
and if that happens then the Nifty may well see a surge towards the 8800 mark.
But if the Opposition manages to stall the GST bill, then Nifty may well test
the strong Support in the form of weekly Bullish Gap between 8407-8398. Global credit rating
agency, Moody's Investors Service's statement that Rajya Sabha's approval of
the Goods and Service Tax (GST) constitutional amendment bill is a credit
positive for India's sovereign and non-financial corporates also lifted
sentiment. After opening higher, key indices remained in positive terrain
throughout the session. Key indices gained for the second day in a row today, 5
August 2016.
MACD continues in Sell mode despite being in positive zone. Price ROC
has just turned positive and has signalled a Buy. RSI (61) suggests bullish
momentum. Stochastic Oscillator %K (50) has just gone above %D; hence it is a
fresh Buy. ADX has improved to 29 which suggest that Uptrend is getting
stronger. Directional Indicators continue in Buy mode as +DI is above –DI. MFI
(45) suggests Negative Money Flow. Thus majority of Oscillators are still
suggesting a slight bullish bias in the near term.This week, both the indices tested the short term average of 20dma
Nifty – 8572 but managed to hold and close above it.
Both the indices continue to remain well above the medium
term average of 50dma Nifty – 8357 and even the long term average of 200dma Nifty –
7857. Thus the trend in the short term, medium term and
even the long term timeframe continues to remain Bullish.
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