NIFTY WEEKLY PREDICTION FOR 22 MAY TO 26 MAY 2017

WEEKLY RESISTANCE FOR NIFTY: 9488, 9507, 9540, 9574

PIVOT POINT: 9470

WEEKLY SUPPORT FOR NIFTY :  9436,9401,9384,9355

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 9482, 9509, 9538,9566

PIVOT POINT: 9455

DAILY SUPPORT FOR NIFTY :  9427, 9398, 9371,9344

DAILY CHART FOR NIFTY

Sensex opened the week at 30268, made a high of 30697, low of 30282 and closed the week at 30485. Thus it closed the week with a gainof 896 points. At the same time the Nifty opened the week at 9448, made a high of 9537 low of 9433  and closed the week at 9456. Thus the Nifty closed the week with a gain of42points.Indices scuttled between gains and losses to finally settle the day marginally higher as 2-day GST Council meet ends where rates for various goods and services were decided.

EVERY DECLINE BEING BOUGHT.

The market continues its upward journey feeding on every minor decline and an increasing feeling of being ‘left out’. Bulls continue to feed on pessimism as they continue to use minor dips for buying and thereby strengthening the Uptrend. A strong Support exists at the Bullish Gap between 9400-9380. A break of this Support will turn the short term trend down and then the market will enter into a Correction mode. Till then, every dip should be treated as a buying opportunity.

TECHNICALLY SPEAKING.

The support for the Nifty is 9401-9384-9366-8314-8280-9262and the resistance to the up move is at 9470-9490-9510-9522-9545levels.MACD despite being in positive zone continues with its Sell signal. Price ROC continues to remain positive and in Buy mode. RSI (60) still suggests Bullish momentum. On the daily charts, nifty have formed a BULLISH MORNING DOJI STARcandle foron Friday.A downtrend is already established, and the black candlestick confirms the continuation of the downtrend. The appearance of the Doji that causes a gap indicates that bears are still pushing down the price. However, this tight price action between the open and the close shows indecision as well. On the third day, the body of the candlestick is above the previous day, trying to cover some of the ground from the down day. A significant trend reversal has occurred.On the weekly charts, Nifty has formed a INVERTED UMBRELLA candle after a neutral formation in last week. The Inverted Umbrella has the potential to point out evidence for buying pressure and indicate a potential bullish reversal if it appears after a long downtrend, long black candlestick or if it is seen at a support level. Likewise it may show a failed rally and indicate a potential bearish reversal if it appears after a long uptrend, long white candlestick or if it is seen at a resistance level. Bearish or bullish confirmation is required in both situations.Thus both daily and weekly formations are suggesting a bearish bias in the near term.

This week, the indices tested the short term average of 22dma Nifty – 9370close above it. The indices continue to remain above the medium term average of 55dma Nifty – 9200 but above the long term average of 200dma Nifty –8751. Thus the trend in the long term has remained bullish whereas the trend in the medium term timeframe continues to remain downtrend.