NIFTY WEEKLY REPORT FOR 15 NOV TO 18 NOV 2016

WEEKLY RESISTANCE FOR NIFTY: 8470, 8602, 8739, 8770

PIVOT POINT: 8339

WEEKLY SUPPORT FOR NIFTY :  8201,8064,7932,7801

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8401, 8429, 8498,8532

PIVOT POINT: 8372

DAILY SUPPORT FOR NIFTY :  8321, 8269, 8241, 8212

DAILY CHART FOR NIFTY

Sensex opened the week at 27852, made a high of 27743, low of 25902 and closed the week at 26818. Thus it closed the week with a loss of 456 points. At the same time the Nifty opened the week at 8535, made a high of 8614, low of 8076 and closed the week at 8327. Thus the Nifty closed the week with a loss of 137 points.  

BIG RANGE : 8000 – 8600.

On Wednesday, the indices opened with a big gap down; tested and even breached the 200dma, but quickly recovered from that level. At one point of time, Sensex was down by more than 1600 points; post which both the indices saw a smart recovery. Interestingly both Sensex and Nifty achieved the Head and Shoulders target of Sensex 26352 and Nifty 8139. As it usually happens, the next few days or even weeks can go in for consolidation, with range being 8600 on the higher side and 8000 on the lower side.

GOVERNMENT DECISION; MARKET SUFFERS.

In a shocking move on Tuesday evening, the Modi Government decided to do away Currency of higher denomination with immediate effect. It was a very strong and bold step taken by the Government to clean up the financial mess that the economy is into, besides stopping Terror Financing. And, A sudden spike in US bond yields to a 10-month high rattled emerging equity markets today, 11 November 2016. Donald Trump was declared as the 45th President of the United States on Wednesday, 9 November 2016.

CANDLESTICK PATTERN:

On the weekly charts, Nifty have formed a big black body candle with longer lower shadow, in line with the downtrend. On the daily charts, the indices opened with a gap down and formed an Opening Black body Marubuzo. Interestingly, it is almost like an Abandoned Baby Top but it has formed in a downtrend, whereas Abandoned Baby Top is formed in an Uptrend. Thus daily as well as weekly candlestick study indicates a bearish bias in the near term.
200 DMA ACTS AS STRONG SUPPORT
Nifty took support at the long term moving average of 200dma, for all days of the past week. A close below the 200dma will pave the way for the indices to test the strong support at the Bearish Gap between Nifty 7948-7941

TECHNICALLY SPEAKING.

                                      Technically, A strong break below 8300 will increase the downside pressure and drag it to 8200/8000. Traders can go short on a break below 8300.On the other hand, a decisive break above 8500 will ease the downside pressure and take the index futures higher to 8600 and 8700 thereafter. MACD and Price ROC are both negative and continue in sell mode. RSI (32) suggests bearish momentum. This week, the indices tested the short term average of 20dma Nifty – 8578 but could not close above it. the indices continue to remain below the medium term average of 50dma Nifty – 8630 but above the long term average of 200dma Nifty – 8122. Thus the trend in the short term and medium term timeframe remains bearish whereas the trend in the long term timeframe still continues to remain Bullish.