On Friday the Nifty closed above the bearish gap indicating the momentum in favor of Bulls. This gap was formed between 61.8% & 78.6% Fibonacci retracement of the fall from 6355 to 5953. In spite of weak start the markets recovered fast. Nifty opened the week at 6140, made a high of 6282, low of 6130 and closed the week at 6276. Thus the Nifty closed the week with a gain of 121 points.
On the daily charts, both Nifty have formed an 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 second week running. Thus candlestick study suggests that the daily as well as weekly bias is bullish.
This week, the market overcame the critical second Bearish Gap between 6188-6263 which holds greater significance as it matches with the formation of weekly Bearish Gap 6188-6243 and the 61.8% Retracement (6220) of the recent fall. A weekly closing above this Resistance zone has opened the doors for the market to test the previous top.
A Bearish Rising Wedge formation got completed sometime back and the target is at Nifty 5841 with a stoploss of 6415. From a longer term perspective, Market has strong Support zone between 5767-5688. This is a confluence zone formed by the presence of Bullish Rising Gap between 5738-5688, intermediate low of Nifty 5700 and the 50% Retracement level which is at Sensex 19466 and Nifty 5767. Thus this is a strong Support Zone and a breach of this support zone will end the current long term uptrend.
This week, Nifty managed to close above the medium term average of 50dma (6183). The index continue to stay above the short term average of 20dma (6098) and the long term average of 200dma (5987). Thus the trend in all three the short, medium and long term time frame is bullish.
RSI @63 suggests strong bullish momentum. MFI @ 85 has moved higher into the overbought zone, suggesting that the market might see some profit booking from the current levels. ADX @ 21 has reduced, suggesting that the downtrend has lost its strength. The Directional Indicators have given a Buy signal as +DI has gone above -DI. OBV has moved higher and crossed the previous intermittent top, giving a Buy signal. Nifty closed above the upper Bollinger Band on Monday, giving a Buy signal. Thus Oscillators suggests positive bias in the near term.
The Nifty O.I. PCR has reduced to 1.10. For the March series, highest Open interest build up is at 6100 Put and 6300 Call. This suggests that the market range of 6100 till 6300 level. Friday saw strong put writing at the strike of 6200 level which is likely to act as an immediate support.
On the daily charts, both Nifty have formed an 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 second week running. Thus candlestick study suggests that the daily as well as weekly bias is bullish.
This week, the market overcame the critical second Bearish Gap between 6188-6263 which holds greater significance as it matches with the formation of weekly Bearish Gap 6188-6243 and the 61.8% Retracement (6220) of the recent fall. A weekly closing above this Resistance zone has opened the doors for the market to test the previous top.
A Bearish Rising Wedge formation got completed sometime back and the target is at Nifty 5841 with a stoploss of 6415. From a longer term perspective, Market has strong Support zone between 5767-5688. This is a confluence zone formed by the presence of Bullish Rising Gap between 5738-5688, intermediate low of Nifty 5700 and the 50% Retracement level which is at Sensex 19466 and Nifty 5767. Thus this is a strong Support Zone and a breach of this support zone will end the current long term uptrend.
This week, Nifty managed to close above the medium term average of 50dma (6183). The index continue to stay above the short term average of 20dma (6098) and the long term average of 200dma (5987). Thus the trend in all three the short, medium and long term time frame is bullish.
RSI @63 suggests strong bullish momentum. MFI @ 85 has moved higher into the overbought zone, suggesting that the market might see some profit booking from the current levels. ADX @ 21 has reduced, suggesting that the downtrend has lost its strength. The Directional Indicators have given a Buy signal as +DI has gone above -DI. OBV has moved higher and crossed the previous intermittent top, giving a Buy signal. Nifty closed above the upper Bollinger Band on Monday, giving a Buy signal. Thus Oscillators suggests positive bias in the near term.
The Nifty O.I. PCR has reduced to 1.10. For the March series, highest Open interest build up is at 6100 Put and 6300 Call. This suggests that the market range of 6100 till 6300 level. Friday saw strong put writing at the strike of 6200 level which is likely to act as an immediate support.
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