The Bulls were on rampage this week, taking bears by horns to lead the market to fresh life time highs. The market was so strong that the Ukraine crisis did not have any impact and easily crossed the previous top. The markets are expecting a Modi led alliance coming in power with strong majority. Thus the fireworks have started with the election dates announcement. The strength of this pre-election rally shows that Nifty is headed towards an intermediate target of 6890 with strong resistance expected at around 6680.
Nifty opened the week at 6264, made a high of 6537, low of 6212 and closed the week at 6526. Thus the Nifty closed the week with a gain of 250 points. On the daily charts, Nifty have formed a big Opening White body Marubuzo which suggests continuation of bullishness in the short term. The weekly charts have formed a big white body candle for the third week running, leading to formation of Three White Soldiers. Thus daily and weekly candlestick study suggests of bullishness to continue.
On Friday, the market opened with a gap up and proceeded to close higher, thus leaving behind a Bullish upward gap (Nifty 6413-6403). This Bullish Gap will act as a strong support going forward. This gap is a Measuring Gap and as per Gap theory the target is at 6886. When the index closed above the previous top, it has completed a Bullish Ascending triangle pattern and the target is at 6897.
As expected the market overcame the previous top and made fresh lifetime highs, thus paving the way for a very strong Upmove. One needs to understand that this marks the end of six year consolidation and hence upward targets also will be high. On the weekly charts both Sensex and Nifty have completed a Bullish Saucer formation and the targets as per that will fall in the range of 7454- 8145 on the higher side. The targets are likely to be achieved over a period of next 20 months. Current rally has started from a low of 5933. Hence it becomes imperative that this support level holds so that the indices can move towards higher targets. Thus a breach of 5933 will derail the current bullish rally. The index has been trending bullish in the short term, the medium term and the long term timeframe.
RSI @74 suggests strong bullish momentum. MFI @ 83 has moved higher into the overbought zone. Stochastic Oscillator continues in Buy mode as %K remains above %D. Thus RSI, MFI and Stochastic Oscillator are all overbought which suggests that the market may witness some profit booking in the near term. ADX (23) has increased, suggesting that the uptrend is now progressing. The Directional Indicators are in a Buy mode as +DI continues to remain above -DI. OBV continues in Buy mode making higher top higher bottom formation. Both the indices continue with Buy signal on Bollinger Band. Thus Oscillators suggests bullish bias in the near term.
The Nifty O.I. PCR has increased to a level of 1.50 which suggests the bullish mood prevailing in the market. For the March series, highest Open interest build up has shifted to 6200 Put and 6600 Call. Friday saw strong put writing at the strike of 6500 level, which is likely to act as a strong immediate support.
Nifty opened the week at 6264, made a high of 6537, low of 6212 and closed the week at 6526. Thus the Nifty closed the week with a gain of 250 points. On the daily charts, Nifty have formed a big Opening White body Marubuzo which suggests continuation of bullishness in the short term. The weekly charts have formed a big white body candle for the third week running, leading to formation of Three White Soldiers. Thus daily and weekly candlestick study suggests of bullishness to continue.
On Friday, the market opened with a gap up and proceeded to close higher, thus leaving behind a Bullish upward gap (Nifty 6413-6403). This Bullish Gap will act as a strong support going forward. This gap is a Measuring Gap and as per Gap theory the target is at 6886. When the index closed above the previous top, it has completed a Bullish Ascending triangle pattern and the target is at 6897.
As expected the market overcame the previous top and made fresh lifetime highs, thus paving the way for a very strong Upmove. One needs to understand that this marks the end of six year consolidation and hence upward targets also will be high. On the weekly charts both Sensex and Nifty have completed a Bullish Saucer formation and the targets as per that will fall in the range of 7454- 8145 on the higher side. The targets are likely to be achieved over a period of next 20 months. Current rally has started from a low of 5933. Hence it becomes imperative that this support level holds so that the indices can move towards higher targets. Thus a breach of 5933 will derail the current bullish rally. The index has been trending bullish in the short term, the medium term and the long term timeframe.
RSI @74 suggests strong bullish momentum. MFI @ 83 has moved higher into the overbought zone. Stochastic Oscillator continues in Buy mode as %K remains above %D. Thus RSI, MFI and Stochastic Oscillator are all overbought which suggests that the market may witness some profit booking in the near term. ADX (23) has increased, suggesting that the uptrend is now progressing. The Directional Indicators are in a Buy mode as +DI continues to remain above -DI. OBV continues in Buy mode making higher top higher bottom formation. Both the indices continue with Buy signal on Bollinger Band. Thus Oscillators suggests bullish bias in the near term.
The Nifty O.I. PCR has increased to a level of 1.50 which suggests the bullish mood prevailing in the market. For the March series, highest Open interest build up has shifted to 6200 Put and 6600 Call. Friday saw strong put writing at the strike of 6500 level, which is likely to act as a strong immediate support.
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