"HAPPY DIWALI TO ALL THE READERS"
WEEKLY
RESISTANCE FOR NIFTY: 8681, 8726, 8782, 8867
PIVOT
POINT: 8636
WEEKLY
SUPPORT FOR NIFTY : 8580,8520,8479,8425
WEEKLY CHAT FOR NIFTY
DAILY RESISTANCE FOR NIFTY: 8677, 8701, 8730,8772
PIVOT
POINT: 8653
DAILY
SUPPORT FOR NIFTY : 8624, 8600, 8576, 8500
DAILY
CHART FOR NIFTY
Sensex
opened the week at 28062, made a high of 28231, low of 27677 and closed the
week at 27941. Thus it closed the week with gain of 248 points. At the same
time the Nifty opened the week at 8750, made a high of 8791, low of 85091 and
closed the week at 8655. The Indian stock market drifted lower on Friday after
opening on a flat note.
SHORT TERM PAIN, LONG TERM GAIN.
It is only
natural to expect the market to gather some fuel before restarting the upward
journey. The current pause in the rally is a necessity as Sensex has gained
6583 points and Nifty 2143 points in a short span of seven months. Both the
indices are in dire need of both price as well as time Correction. Even a sharp
price Correction is unlikely to breach the strong support level of Sensex 25911
and Nifty 7927. As soon as the Consolidation/Correction gets completed, one can
expect the previous life high levels to be tested and even be surpassed.
8500 - CRITICAL LEVEL.
Even though there is a bullish candlestick pattern formed on the daily
charts on Friday, it will not lead to trend reversal in the short or medium
term timeframe. It can be termed as a price reversal in the daily timeframe and
once that minor pull-back in price is done, one can expect a break of the
critical Trend line support of Nifty 8500 has been breached. Thus as a result
one can expect the indices to move lower to test the long term average of
200dma.
TECHNICALLY SPEAKING.
Technically,
Nifty is now placed near the mean
of the channel pattern & the positive crossover in the RSI indicates a move
towards the upper end of the channel placed near 8,750. Only a sustained move
above 8,750 could extend the up move towards 8,900; hence long positions shall
be maintained with a trail stop strategy below 8,600.A strong break (close)below 8500 will increase the downside pressure and
drag it to 8400,8200.
MACD and
Price ROC are both negative and continue in sell mode. RSI (55) suggests
bearish momentum. This week, both the indices remained comfortably above
the short term average of 20dma Nifty – 8500, medium term
average of 50dma Nifty – 8300 and even the long term average of
200dma Nifty – 7500. Thus the trend in the short term, medium term and
even the long term timeframe continues to remain Bearish.
UPCOMING RESULTS:
ICICI BANK,
ICICI BANK
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