NIFTY WEEKLY REPORT FOR 26 TO 30 DEC 2016

WEEKLY RESISTANCE FOR NIFTY: 8075, 8104, 8158, 8212

PIVOT POINT: 8039

WEEKLY SUPPORT FOR NIFTY :  7985,7931,7899,7866

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8016, 8037, 8058,8079

PIVOT POINT: 7995

DAILY SUPPORT FOR NIFTY :  7974, 7950, 7932,7911

DAILY CHART FOR NIFTY

Sensex opened the week at 26416, made a high of 26440, low of 25878 and closed the week at 26055. Thus it closed the week with a loss of 434 points. At the same time the Nifty opened the week at 8132, made a high of 8148, low of 7953 and closed the week at 7996. Thus it closed the week with a loss of 150 points. Nifty Snapping a seven-day losing streak, the domestic equity market ended on a positive note on Friday . The Nifty closed slightly up at 7,996, after briefly recapturing the 8,000 level. 

SELL ON RISE.

Even though the positive price movement of the indices made sure that the short term trend has turned positive but the fact remains that the medium and long term trend still remains bearish. Even though further pull-back cannot be ruled out, studies clearly point towards formation of short positions at every rise. Thus market participants should keep in mind that the market still remains a Sell on Rise and should create short positions at every increment.

NIFTY FAIL TO HOLD AT CRITICAL LEVEL 8000

It was Bears who were in command for the entire week. Every small rise got sold into and the Bears have managed to drag the market down near the long term support of 200dma. As a matter of fact, whereas the Nifty has failed to managed to hold 8000 level for the week. So weekly on upside first intra resistance is at 8005-10 level. Next resistance are at 8032-37,8075-80,8124-29,8154-59. On downside first support is at 7952-47 level. Next support are at 7926-21,7882-77,7834-29,7804-99,7742-38,7696-92.

TECHNICALLY SPEAKING.

On the daily charts, Nifty have formed a real White body candle. On the weekly charts Nifty have formed a Black body candle with a long upper shadow. Interestingly it falls short of being a Dark Cloud Cover. Thus daily candlestick study indicates a minor bullish bias in the near term. MACD and Price ROC are both positive and continue in buy mode. RSI (35) suggests bearish momentum. This week, the indices tested the short term average of 22dma Nifty – 8155 but could not close above it. the indices continue to remain below the medium term average of 55dma Nifty – 8290 but above the long term average of 200dma Nifty – 7550. Thus the trend in the short term and medium term timeframe remains bullish whereas the trend in the long term timeframe still continues to remain Bearish.