30 October 2016

NIFTY WEEKLY REPORT FOR 01 NOV TO 04 NOV 2016

"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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