6 May 2017

NIFTY WEEKLY REPORT FOR 08 MAY TO 12 MAY 2017

WEEKLY RESISTANCE FOR NIFTY: 9380, 9413, 9431, 9450
PIVOT POINT: 9347
WEEKLY SUPPORT FOR NIFTY :  9328,9277,9244,9192
WEEKLY CHAT FOR NIFTY


















 DAILY RESISTANCE FOR NIFTY: 9337, 9351, 9368,9385
PIVOT POINT: 9323
DAILY SUPPORT FOR NIFTY :  9306, 9288, 9275,8230
DAILY CHART FOR NIFTY


Sensex opened the week at 29932, made a high of 30159, low of 29828 and closed the week at 29827. Thus it closed the week with a loss of 84 points. At the same time the Nifty opened the week at 8337, made a high of 9384, low of 9281 and closed the week at 9315. Thus the Nifty closed the week with a loss of15 points.The indices settled lower on Friday as banking stocks dipped after the government notified the Banking Regulation (Amendment) Ordinance, 2017, while a drop in crude prices dragged down oil explorers such as ONGC and Oil India.



TREND STILL POSITIVE.
A big bearish candle formation on Friday has the Bulls worried. But the Bulls need to keep in mind that the Trend across short and medium term timeframe still remains upward. Also a strong Support exists at the Bullish Gap between 9250-9225. A break of this Support will turn the short term trend down and then the market will enter into a Correction mode. Current Upward Rally will resume only when the indices close above the failure point i.e. top of bearish candle of Friday Nifty 9377).

TECHNICALLY SPEAKING.

The support for the Nifty is 9280-9300-9320and the resistance to the up move is at 9360-9380-9400-9425levels.MACD despite being in positive zone continues with its Sell signal. Price ROC continues to remain positive and in Buy mode. RSI (57) still suggests Bullish momentum. On the daily charts, niftyhas formed a Bearish Engulfing pattern whereas Nifty has formed a Bearish Belt Hold pattern. Both are bearish reversal patterns. On the weekly chart, the indications are not bearish as both the indices have formed a small black body candle. Thus the daily candlestick pattern study indicates a bearish bias whereas weekly study indicates a positive bias.This week, the indices tested the short term average of 22dma Nifty – 9231close above it. The indices continue to remain above the medium term average of 55dma Nifty – 9111 but above the long term average of 200dma Nifty –8654. Thus the trend in the short term has remained bullish whereas the trend in the medium term and the long term timeframe continues to remain upwards.

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