The Bulls took the market by horn which took the market 100 points up. This helped market not only close above the upper trendline resistance of rising channel but also the 8655 is within reach. Nifty opened the week at 8490, made a high of 8617, low of 8429 and closed the week at 8588. Thus the Nifty closed the week with a gain of 111 points. After testing the rising Trendline with indecisive candles for first four days of the week, Nifty formed a big Opening White body Marubuzo on Friday which helped achieve the breakout by closing above that Trendline. On the weekly chart, Nifty has formed a real white body candle. This is second successive real body candle in last two weeks which points towards more upside in the near term. Thus both daily and weekly candles suggest continuation of bullishness.
As mentioned earlier, a decisive breakout above the rising Trendline is likely to propel the index to much higher levels. Thus one can expect Nifty to move towards an immediate target of 8656, which is target as per Gap theory. Above which one can expect it to move towards intermediate rally target (golden ratio) which is at 8893.
Nifty continues to remain above the short term average of 20dma (8399), medium term average of 50dma (8140) and even above the long term average of 200dma (7380). Thus the trend in the short term, medium term and the long term time frame remains bullish.
RSI @ 74 is in over bought zone for past 4 weeks. Stochastic oscillator %K (83) also continue to remain overbought since last one month. However MFI @70 suggests positive money flow in the market but continues to play with the overbought zone. ADX has further increased to 33, which indicates that the uptrend is getting stronger. Direction Indicators continue in buy mode as +DI remains above –DI. Bollinger Band continues in Buy mode. Except for certain Oscillators which are overbought, majority of the Oscillators are suggesting bullishness in the short term.
Option data for the December series, shows highest Put Open Interest continues at the strike of 8500 and highest Call build-up has shifted higher to the strike of 8600. Thus Option data suggests a very narrow trading range with support coming in at 8500 and resistance around 8600. On Friday, 8800 Call has seen strong Open Interest buildup which suggests that the market might find next resistance at the level of 8800.
Stock of the week:
Bank of Baroda
The Stock has given a Bullish Flag Pole pattern breakout on the daily charts with huge volume. The RSI has also bounced from the support of 60%, indicating bullishness. The pattern target lies at 1286 with stop loss of 1000. For the short term the stock can be bought with the stop loss of 1021 at cmp and on fall till 1060 for the target of 1108-1125-1140-1174.
As mentioned earlier, a decisive breakout above the rising Trendline is likely to propel the index to much higher levels. Thus one can expect Nifty to move towards an immediate target of 8656, which is target as per Gap theory. Above which one can expect it to move towards intermediate rally target (golden ratio) which is at 8893.
Nifty continues to remain above the short term average of 20dma (8399), medium term average of 50dma (8140) and even above the long term average of 200dma (7380). Thus the trend in the short term, medium term and the long term time frame remains bullish.
RSI @ 74 is in over bought zone for past 4 weeks. Stochastic oscillator %K (83) also continue to remain overbought since last one month. However MFI @70 suggests positive money flow in the market but continues to play with the overbought zone. ADX has further increased to 33, which indicates that the uptrend is getting stronger. Direction Indicators continue in buy mode as +DI remains above –DI. Bollinger Band continues in Buy mode. Except for certain Oscillators which are overbought, majority of the Oscillators are suggesting bullishness in the short term.
Option data for the December series, shows highest Put Open Interest continues at the strike of 8500 and highest Call build-up has shifted higher to the strike of 8600. Thus Option data suggests a very narrow trading range with support coming in at 8500 and resistance around 8600. On Friday, 8800 Call has seen strong Open Interest buildup which suggests that the market might find next resistance at the level of 8800.
Stock of the week:
Bank of Baroda
The Stock has given a Bullish Flag Pole pattern breakout on the daily charts with huge volume. The RSI has also bounced from the support of 60%, indicating bullishness. The pattern target lies at 1286 with stop loss of 1000. For the short term the stock can be bought with the stop loss of 1021 at cmp and on fall till 1060 for the target of 1108-1125-1140-1174.
