NIFTY WEEKLY PREDICTION FOR 23 JAN TO 27 JAN 2017

WEEKLY RESISTANCE FOR NIFTY: 8455, 8478, 8496, 8514

PIVOT POINT: 8431

WEEKLY SUPPORT FOR NIFTY :  8413,8395,8372,8348

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8398, 8414, 8439,8465

PIVOT POINT: 8383

DAILY SUPPORT FOR NIFTY :  8357, 8332, 8312,8300

DAILY CHART FOR NIFTY

Sensex opened the week at 27215, made a high of 27418, low of 27034 and closed the week at 27034. Thus it closed the week with a gain of 459points. At the same time the Nifty opened the week at 8404, made a high of 8468, low of 8352 and closed the week at 8363.Indian stock markets extended losses where both Nifty and Sensex tumbled as much as 1%. Nifty hit below 8380 mark and closed at 8363 while Sensex shed 274 points and closed just above 27000 mark at 27034.Nifty closed below 8380 for the first time in 8 sessions.

SHORT NIFTY ONLY BELOW 8350 WITH STOP LOSS 8400

Nifty has to cross and hold above 8480 zones to witness follow up bounce back move towards 8550 and 8620 zones. On the downside it has support near to 8350 and below that selling pressure may drag it towards 8200 zones.Friday,The Nifty futures contract started the session on a negative note, opening at 8,400 levels.It recorded an intra-day high at 8,434 and resumed its fall. The contract decisively breached the immediate support level at 8,380 and marked an intra-day low at 8,352 levels.

The market breadth, that is the advances/declines ratio, is negative for the Nifty. The nifty is experiencing selling pressure. The near-term outlook for the session is bearish.Traders with a near-term view can make use of intra-day rallies to initiate fresh short positions while maintaining a stop-loss at 8,400 levels.Continuing its downtrend, the contract can test support at 8,350 levels. Further decline below 8,350 can pull the contract down to 8,300 and then to 8,250. Key resistances beyond 8,400 are at 8,425 and 8,450 levels.

TECHNICALLY SPEAKING.

Nifty would see strong support at 8350-8330-8300-8280/8250 whereas strong resistance would be seen at 8400-8430-8460-8500-8520 levels. MACD and Price ROC are both positive and continue in buy mode. RSI (55) suggests bearish momentum. This week, the indices tested the short term average of 22dma Nifty – 8350 but could not close above it. the indices continue to remain below the medium term average of 55dma Nifty – 8240 but above the long term average of 200dma Nifty –7550. 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 bearish.