NIFTY WEEKLY REPORT FOR 03 OCT TO 07 OCT 2016

WEEKLY RESISTANCE FOR NIFTY: 8751, 8800, 8881, 8962

PIVOT POINT: 8702

WEEKLY SUPPORT FOR NIFTY :  8621,8540,8491,8442

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8659, 8681, 8713,8751

PIVOT POINT: 8637

DAILY SUPPORT FOR NIFTY :  8621, 8605, 8583, 8561

DAILY CHART FOR NIFTY

Sensex opened the week at 28741, made a high of 28776, low of 27754 and closed the week at 27865. Thus it closed the week with gain of 248 points. At the same time the Nifty opened the week at 8846, made a high of 8864, low of 8604  and closed the week at 8638. The key benchmark swung between gains and losses but finally closed higher on friday. After opening on a flat note indices remained under pressure and slipped lower in the first half. 

TECHNICALLY SPEAKING.

MACD and Price ROC are both positive and continue in Buy mode. RSI (55) suggests bearish momentum. This week, both the indices remained comfortably above the short term average of 20dma Nifty – 8740, medium term average of 50dma Nifty – 8654 and even the long term average of 200dma Nifty – 8250. Thus the trend in the short term, medium term and even the long term timeframe continues to remain Bullish.

                                Key indices rose on bargain hunting after suffering steep losses yesterday, 29 September 2016 triggered by flare up in India-Pakistan tension after Indian Army in a press conference yesterday, 29 September 2016 revealed that it conducted surgical strikes against terror launch pads inside Pakistan occupied Kashmir. However, gains were capped by weakness in global stocks.

Nifty, Short If Nifty Breaches 8500 Levels.

Technically, Indian Stock Market is still in negative zone but market would see a bounce at lower levels near support in reaction to yesterday’s downfall. FIIs and DIIs have seen huge buying in yesterday’s downfall and that suggests that this downfall was temporary in nature. Nifty is lying near its major support level of 8500. 8500 is a make or break level on closing basis. If Nifty closes below those levels then a breakdown would be seen in the market and we can even see levels of 8200-8000-7700 in days to come. But traders can take a chance here. Traders can go long near 8550 levels for Nifty with strict stop loss of 8500 on closing basis. There are strong chances for Market to see a bounce near those levels. So, traders can go long until Nifty holds 8500 and short once Nifty closes below 8500 levels. If Nifty holds 8500 for next couple of days then we would see a sharp positive rally.

UPCOMING EVENT:

The major domestic event in the upcoming week is the Reserve Bank of India's (RBI) fourth bi-monthly monetary policy meeting scheduled on Tuesday, 4 October 2016. The RBI after the third bi-monthly monetary policy on 9 August 2016, decided to keep the policy repo rate unchanged at 6.5%. Consequently, the reverse repo rate remained unchanged at 6%. RBI also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4%. Shares of interest rate sensitive sectors may remain in focus on the eve of the Reserve Bank of India (RBI)'s monetary policy meeting.