NIFTY WEEKLY REPORT FOR 06 SEP TO 09 SEP 2016

WEEKLY RESISTANCE FOR NIFTY: 8835, 8921, 8978, 9034

PIVOT POINT: 8749

WEEKLY SUPPORT FOR NIFTY :  8693,8550,8464,8322

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8844, 8861, 8871,8906

PIVOT POINT: 8827

DAILY SUPPORT FOR NIFTY :  8818, 8808, 8791, 8774

DAILY CHART FOR NIFTY

DAILY RESISTANCE FOR BANKNIFTY: 19997, 20045, 20069,20166

PIVOT POINT: 19950

DAILY SUPPORT FOR BANKNIFTY : 19901, 19853, 19806, 19734

DAILY CHART FOR BANKNIFTYSensex opened the week at 27827, made a high of 28581, low of 27698 and closed the week at 28532. Thus it closed the week with a gain of 750 points. At the same time the Nifty opened the week at 8583, made a high of 8824, low of 8543 and closed the week at 8809. Thus the Nifty closed the week with a gain of 237 points. The Indian equity market closed the week on a positive note as indices erased initial losses on Friday and closed higher.

Ø LIFE-HIGHS CAN BE TESTED.

After a consolidation of more than six weeks, Market finally managed a bullish breakout of the narrow Trading Range of 250 Nifty points i.e. between 8728-8476. As a result Nifty will move higher to test the Measuring Gap target of 8833 and Flag pattern target of 8869. On the lower side of the Trading Range lies the Bullish Gap between Nifty 8479-8475. This has supported the Nifty six times before staging an upward breakout. Hence as long as this Bullish Gap holds, one can expect not only Measuring Gap target and Flag pattern target but also expect a shot at life time high levels for the indices.

Ø BULLISH BREAKOUT TO TRADING RANGE

Finally after more than six weeks of consolidation, both the indices managed to give a bullish breakout to the narrow trading range between Sensex 28289-27627 and Nifty 8728 – 8476. As a result, one can expect the higher targets to be achieved and also possibly test the life-high levels. On the daily charts, both Sensex and Nifty have formed a small white body candle which is in continuation to Upward Trend. On the weekly charts, both the indices have made a big White body candle which has completely removed the bearishness of last three weeks. Thus daily and weekly candlestick study suggests a bullish bias.

Ø TECHNICALLY SPEAKING

Now Technically, Indian Stock Market is in positive trend and traders should go long at every dip in the market. Traders can hold long positions in market for now, Nifty may see some immediate resistance at 8867-8888 levels but these are not very strong resistance and overall market sentiments would remain positive. Every correction would be an opportunity for traders to go long in the market. Near term targets for Nifty would be 8900-8950-9000 levels . This week, nifty closed below the short term average of 20dma Nifty – 8665. And continue to remain well above the medium term average of 50dma Nifty – 8532 and even the long term average of 200dma Nifty – 7910. Thus the trend in the short term time frame has turned down whereas the trend in the medium term and the long term timeframe continues to remain Bullish.

Ø WEEKLY BANKNIFTY OUTLOOK

BankNifty would see levels of breakout-20000 levels after some consolidation. US Fed outcome would play major role in deciding the further movement but for now trade is to go long at every dip. If BankNifty closes below 20000 levels .  one can  expect a shot at life time high levels for the Banknifty. Once this range is breached on negative side, BankNifty may see downfall upto 19000-18500 levels .Traders can go for short with given levels. with Strict stoploss 19500 levels for BankNifty.