NIFTY WEEKLY PREDICTION FOR 21 NOV TO 25 NOV 2016

WEEKLY RESISTANCE FOR NIFTY: 8187, 8236, 8311, 8385

PIVOT POINT: 8138

WEEKLY SUPPORT FOR NIFTY :  8064,7989,7940,7885

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8104, 8121, 8146,8172

PIVOT POINT: 8088

DAILY SUPPORT FOR NIFTY :  8064, 8037, 8020, 8004

DAILY CHART FOR NIFTY

 Sensex opened the week at 27204, made a high of 27270, low of 26127 and closed the week at 26150. Thus it closed the week with a loss of 668 points. At the same time the Nifty opened the week at 8279, made a high of 8287, low of 8040 and closed the week at 8074. Thus the Nifty closed the week with a loss of 253 points.  

CANDLESTICK PATTERN:

On the weekly charts, Nifty have formed a big black body candle with short lower shadow, in line with the downtrend. On the daily charts, the indices opened flat down and formed a Black body doji. Interestingly, it is almost like an red doji but it has formed in a downtrend, whereas doji is formed in an downtrend. Thus daily as well as weekly candlestick study indicates a bearish bias in the near term.

8000 ACTS AS STRONG SUPPORT
For now, 8,000 remains to be a strong support zone; whereas a possibility of a bounce towards 8,220-8,300 remains valid.Nifty took support at the long term moving average of 200dma, for all days of the past week. A close below the 8000 will pave the way for the indices to test the strong support at the Bearish Gap between Nifty 7900-7800.

TECHNICALLY SPEAKING.

                                      Technically, A strong break below 8000 will increase the downside pressure and drag it to 7900/7850. Traders can go short on a break below 8000.On the other hand, a decisive break above 8300 will ease the downside pressure and take the index futures higher to 8400 and 8500 thereafter. MACD and Price ROC are both negative and continue in sell mode. RSI (35) suggests bearish momentum. This week, the indices tested the short term average of 20dma Nifty – 8500 but could not close above it. the indices continue to remain below the medium term average of 50dma Nifty – 8290 but above the long term average of 200dma Nifty – 7800. 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.