On the back of Interim budget the Bulls took market for a ride with around 1.75%. The interim budget was non event as expected except for the surprise excise duty cut especially for auto industry. The nifty managed to fill its first bearish gap between 6097 – 6109, but also close well above that. The next gap between Nifty 6188-6243 is a weekly gap which coincides with daily gap as well and is likely to provide a stern test for the bulls. A weekly closing above this gap will pave the way towards testing the previous top for the markets.
Nifty opened the week at 6057, made a high of 6160, low of 6038 and closed the week at 6155. Thus the Nifty closed the week with a gain of 107 points. On the daily charts, Nifty have formed an Opening White body Marubuzo after a black body formation on the previous day, suggesting that the short term uptrend continues. The weekly chart has seen formation of big white body candle after two doji (neutral) candle-stick formations. Thus it suggests that the weekly bias has also turned bullish. However a big white body candle this week will provide the necessary confiration of reversal.
This week, Nifty managed to close above the short term average of 20dma (6075) but they are still below the medium term average of 50dma (6179). The index continue to remain above the long term average of 200dma (5983). Thus the trend in the short term has turned positive while the trend in the medium term timeframe remains bearish and in the long term timeframe remains positive.
RSI (52) has just crossed the equilibrium line suggesting bullish momentum. ADX (25) has reduced slightly but still suggests that the trend is strong. The Directional Indicators continue with its Sell signal as -DI remains above +DI. MACD continues with its Buy signal despite being in the negative zone. MFI (77) continues to move higher, suggesting money inflow. Stochastic Oscillator continues in Buy mode as %K (88) remains above %D. Even though OBV has moved higher, it is yet to cross the previous intermittent top. The Sell signal in Bollinger Band got negated this week as index closed above the mean of 20dma. Thus Oscillators suggests positive bias in the near term.
The Nifty O.I. PCR has increased and is now at 1.57. For the Feb series, highest Open interest build up is at 6000 Put and 6200 Call. This suggests that the market expects a support coming in at 6000 levels and resistance around 6200 levels. Friday saw strong put writing at the strike of 6100 level which is likely to act as an immediate support.
Nifty opened the week at 6057, made a high of 6160, low of 6038 and closed the week at 6155. Thus the Nifty closed the week with a gain of 107 points. On the daily charts, Nifty have formed an Opening White body Marubuzo after a black body formation on the previous day, suggesting that the short term uptrend continues. The weekly chart has seen formation of big white body candle after two doji (neutral) candle-stick formations. Thus it suggests that the weekly bias has also turned bullish. However a big white body candle this week will provide the necessary confiration of reversal.
This week, Nifty managed to close above the short term average of 20dma (6075) but they are still below the medium term average of 50dma (6179). The index continue to remain above the long term average of 200dma (5983). Thus the trend in the short term has turned positive while the trend in the medium term timeframe remains bearish and in the long term timeframe remains positive.
RSI (52) has just crossed the equilibrium line suggesting bullish momentum. ADX (25) has reduced slightly but still suggests that the trend is strong. The Directional Indicators continue with its Sell signal as -DI remains above +DI. MACD continues with its Buy signal despite being in the negative zone. MFI (77) continues to move higher, suggesting money inflow. Stochastic Oscillator continues in Buy mode as %K (88) remains above %D. Even though OBV has moved higher, it is yet to cross the previous intermittent top. The Sell signal in Bollinger Band got negated this week as index closed above the mean of 20dma. Thus Oscillators suggests positive bias in the near term.
The Nifty O.I. PCR has increased and is now at 1.57. For the Feb series, highest Open interest build up is at 6000 Put and 6200 Call. This suggests that the market expects a support coming in at 6000 levels and resistance around 6200 levels. Friday saw strong put writing at the strike of 6100 level which is likely to act as an immediate support.
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