NIFTY WEEKLY REPORT FOR 21 AUG–25 AUG 2017

WEEKLY RESISTANCE FOR NIFTY: 9924,9974, 10006,10039

PIVOT POINT: 9875

WEEKLY SUPPORT FOR NIFTY :  9842,9810,9760,9711

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 9860, 9882, 9887,9913

PIVOT POINT: 9839

DAILY SUPPORT FOR NIFTY :  9822,9807,9785,9763

DAILY CHART FOR NIFTY

Sensex opened the week at 31224, made a high of 31880, low of 31152 and closed the week at 31509. Thus the Sensex closed the week with gain of 296 points. At the same time the Nifty opened the week at 9778, made a high of 9940 low of 9776 and closed the week at 9849. Thus the Nifty closed the week with gain of 108 points.The Sensex plunged over 270 points led by Infosys as the company Chief Executive Vishal Sikka's resignation heightened uncertainty about the IT services provider's future.

SELLING PRESSURE TILL NIFTY BELOW 9910

As the Correction continues, markets are witnessing Selling at every higher levels and this will continue till the market conquers the Resistance zone of Nifty 9930-9950. A closing above this level will indicate end of Correction and resumption of prior Uptrend. On the other hand, a break of critical Support Trendline Nifty 9830 will signal further intensification of Correction which will have Corrective levels placed at 9800-9740-9700. On the daily charts, Nifty have formed an Opening Black body Marubuzo pattern which indicates a reduced bearishness. On the weekly charts, have formed a small white body candle which is on lines of Bullish Harami pattern but it cannot be classified as it has formed near the top as per weekly chart. Thus daily as well as weekly candlestick patterns suggest bearishness in the near term.

TECHNICALLY SPEAKING.

MACD and Price ROC, both are negative and continue in Sell mode. RSI (46) suggests bearish momentum.Nifty tested the short term average of 20 dma 9958 and fell from there whereas the medium term average of 50 dma 9790 provided good Support as the market recovered from that level. Thus a break of the medium term average will be an indication that the Correction will intensify and lower levels will be visited. Nifty continue to remain above the long term average of 200 dma 9028 Thus the Trend in the short term remains bearish, whereas the trend in the medium term and long term time frame continues to remain upwards.

Technically, Nifty short-term selling in rallies while maintaining a fixed stop-loss at 9,790 levels. The contract can resume its down move and test support at 9,800 levels. Further decline below 9,800 can pull the contract down to 9,775 and 9,750 levels in the near term.Key resistances above 9,860 are at 9,880 and 9,910 levels. Strong rally beyond 9,910 is required to bring back the bullish momentum. Resistances above 9,910 are at 9,930 and 9,950 levels.The support for the Nifty is 9830-9800-9780-9750.