Nifty opened the week at 6093, made a high of 6201, low of 6032 and closed the week at 6189. Thus the Nifty closed the week with a gain of 93 points. Nifty have formed a Bullish white body candle on the weekly charts which follows last weeks big white body candle. Also on the daily charts, the index have formed a Bullish Opening White body Marubuzo which has removed the bearishness of the previous two days. Thus both daily as well as weekly charts suggest continuation of bullishness in the near term.
The current bullish rally started two weeks back when index formed a Bullish Island Reversal. This was from the strong Support Zone formed by the confluence of the Bullish Rising Gap between Nifty 5688-5738 and 50dma for the Nifty at 5734. This is a critical gap and a breach of this gap will end the current uptrend. Current rally has shown tremendous strength and as a result the market has just closed below a critical Trend line for Nifty at 6318 and a breach of this Trend line will set the market to not only cross the all time highs but move towards a potential target of short term target of Nifty 6584. The Measuring Gap in Nifty 5688-5738 has a target of 6308.
MACD and ROC both continue with Buy signals. RSI (67) suggests higher bullish momentum. MFI (65) continues in Buy mode, suggesting money flowing in. Stochastic Oscillator continues with its Buy signal (%K is above %D). ADX is at 17, suggesting that the market trend is sideways, with +DI remains above -DI. OBV continues to make higher top, higher bottom. Nifty touched the upper Bollinger band on Friday, but could not manage to close above that, hence no signal. Oscillators suggest a bullish bias in the short term.
The Nifty O.I. PCR has increased to 1.56. The highest Open interest build up continues to remain at 5700 Put and 6300 Call. This suggests that the market has support at 5700 levels and resistance around 6300 levels. Friday saw high amount of Put writing at 6100 strike which indicates strong support at that level, in the short term.
The current bullish rally started two weeks back when index formed a Bullish Island Reversal. This was from the strong Support Zone formed by the confluence of the Bullish Rising Gap between Nifty 5688-5738 and 50dma for the Nifty at 5734. This is a critical gap and a breach of this gap will end the current uptrend. Current rally has shown tremendous strength and as a result the market has just closed below a critical Trend line for Nifty at 6318 and a breach of this Trend line will set the market to not only cross the all time highs but move towards a potential target of short term target of Nifty 6584. The Measuring Gap in Nifty 5688-5738 has a target of 6308.
MACD and ROC both continue with Buy signals. RSI (67) suggests higher bullish momentum. MFI (65) continues in Buy mode, suggesting money flowing in. Stochastic Oscillator continues with its Buy signal (%K is above %D). ADX is at 17, suggesting that the market trend is sideways, with +DI remains above -DI. OBV continues to make higher top, higher bottom. Nifty touched the upper Bollinger band on Friday, but could not manage to close above that, hence no signal. Oscillators suggest a bullish bias in the short term.
The Nifty O.I. PCR has increased to 1.56. The highest Open interest build up continues to remain at 5700 Put and 6300 Call. This suggests that the market has support at 5700 levels and resistance around 6300 levels. Friday saw high amount of Put writing at 6100 strike which indicates strong support at that level, in the short term.
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