Nifty opened the week at 6202, made a high of 6252, low of 6116 and closed the week at 6144. Thus the Nifty closed the week with a loss of 45 points. Nifty have formed a small black body Spinning Top on the daily charts. On weekly charts Nifty has formed a black body candle which is not bearish. Hence both daily as well as weekly charts suggest a consolidation in the near term. Last week Nifty bounced back from the gap between 6046 - 6033. Thus this gap acted as a support as the market bounced from a level of 6032. Thus a breach of this low will signal a trend reversal in the short term time frame.Last week Nifty has remained above the long term average of 200dma (5851), medium term average of 50dma (5794) and the short term average of 20dma (6016). Thus the trend in the short term, medium term and long term timeframe remains positive. The RBI policy and the expiry will dictate the market direction this week.
MACD and ROC are both positive and continue with their Buy signals. RSI (61) suggests bullish momentum to continue. MFI (65) continues in Buy mode, suggesting money flowing in. Stochastic Oscillator continues with its Sell signal. ADX is at 19, suggesting that the market is consolidating. The Directional Indicators continue with its Buy signal as +DI remains above -DI. OBV has fallen lower but has not yet gone below the previous bottom.
The Nifty O.I. PCR is at 1.45. For the next month series, highest Open interest build up is 6000 Put and 6300 Call. This suggests that the market expects a trading range with support at 6000 levels and resistance around 6300 levels. Friday saw high amount of Put writing at 6100 strike which indicates strong support in the short term.
MACD and ROC are both positive and continue with their Buy signals. RSI (61) suggests bullish momentum to continue. MFI (65) continues in Buy mode, suggesting money flowing in. Stochastic Oscillator continues with its Sell signal. ADX is at 19, suggesting that the market is consolidating. The Directional Indicators continue with its Buy signal as +DI remains above -DI. OBV has fallen lower but has not yet gone below the previous bottom.
The Nifty O.I. PCR is at 1.45. For the next month series, highest Open interest build up is 6000 Put and 6300 Call. This suggests that the market expects a trading range with support at 6000 levels and resistance around 6300 levels. Friday saw high amount of Put writing at 6100 strike which indicates strong support in the short term.
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