NIFTY WEEKLY REPORT FOR 14 AUG–18 AUG 2017

WEEKLY RESISTANCE FOR NIFTY: 9986, 10047, 10144, 10241

PIVOT POINT: 9925

WEEKLY SUPPORT FOR NIFTY :  9828,9731,9670,9609

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 9769, 9788, 9814,9839

PIVOT POINT: 9749

DAILY SUPPORT FOR NIFTY :  9724,9698,9679,9659
DAILY CHART FOR NIFTY

Sensex opened the week at 32377, made a high of 32396, low of 31128 and closed the week at 31213. Thus the Sensex closed the week with loss of 1112 points. At the same time the Nifty opened the week at 10099, made a high of 10119 low of 9710 and closed the week at 9737. Thus the Nifty closed the week with loss of 356 points. Continuing tension between the US and North Korea weighed down Indian equity markets as the benchmarks closed more than 1 per cent lower on friday.This is the fifth straight session of declines for the Indian benchmarks, making it the worst weekly performance since February 2016. During the week, the Sensex fell a little over 5 per cent.

MUCH AWAITED ‘CORRECTION’ BEGINS

‘Correction’ is one of the most interesting aspects of market behaviour. when the market moves up considerably; and it actually sets in, then we pray for its end. The truth remains that for any rally to sustain and head higher, it has to undergo a Correction which not only makes it stronger but also ready for higher targets. After grappling with the target zone of Nifty 10100-10400 for almost two weeks, Correction has set in and we are now looking at the Correction levels for this entire Upward Rally which begun from  Nifty 9600-9000. In the process, the short term and medium term Trend has turned bearish and hence we can expect selling pressure on every rise. 

TREND TURNS BEARISH.

A On the daily charts, Nifty has formed a Doji which is a bullish reversal pattern but requiring confirmation.On the weekly charts, Nifty have formed a Opening Black body Marubuzo which has engulfed previous four weeks bullish candles. Thus more than daily, weekly candlestick pattern suggests strong bearishness in the near term.As long as the NIFTY trades above the level of 9900, the outlook for the session will remain bullish. Traders with a short-term perspective can sell on rise with a stop-loss at 9950 levels. Nifty can continue its up move on a strong rally beyond its immediate resistance level of 9800. Next key resistances are at 9855, 9900 and 9950 levels. Key supports below 9710 are at 9655 and 9600,9500.

TECHNICALLY SPEAKING.

MACD despite being in negative zone continues with its sell signal. RSI (36) strong suggests Bearish momentum. This week, the indices breached the the short term average of 22EMA Nifty – 9962 .and even the medium term average of 50 EMA Nifty 9774 and close below that.But both the indices continue to remain above the long term average of 200dma Nifty –9003. Thus the Trend in the short term and medium term timeframe has turned bearish, whereas the trend in the long term timeframe continues to remain upwards.