The market although kept making new lifetime high but latter it fallowed previous two weeks pattern of sideways consolidation. However the small-cap and mid-cap has become hot battle ground for the bulls. The bearish doji of the last week was negated by the bullish candle this week. This indicates that the market is not ready for correction and there is still some steam left for up side move. Any decline towards the 8300 level should be bought into with 8275 as stop loss.
Nifty opened the week at 8337, made a high of 8415, low of 8304 and closed the week at 8389. Thus the Nifty closed the week with a gain of 52 points. Bearish doji pattern formed last week got negated this week as the index has formed a small white body candle on the weekly charts and finally Nifty managed to close above the 8360 level. On the daily charts Nifty has Bullish Harami like pattern but it has to be ignored as its in uptrend. Thus both daily and weekly candlestick formations indicate continuation of bullishness in short term.
Nifty has left behind a Bullish Rising Gap between 8198-8181. This gap will not only act as a support but it can also be interpreted as a Measuring Gap and the target as per Gap Theory falls at 8656.
Nifty maintained price above the short term average of 20dma (8132), medium term average of 50dma (8061) and even above the long term average of 200dma (7268). Thus the trend in the short term, medium term and the long term time frame remains bullish.
RSI@71 continues to remain overbought for the last two weeks. The Stochastic oscillator (%K @90) which is overbought for the last three weeks. This in itself is proof of resilient strong bullish momentum. MFI @78 continues to show strength and suggests positive money flow in the market but continues to play with the overbought zone. ADX has further increased to 29, 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. Apart from certain overbought Oscillators, majority of the Oscillators are suggesting bullishness in the short term.
Option data for the current series, shows highest Put Open Interest has shifted to the strike of 8300 and highest Call build-up has shifted to the strike of 8500. Thus Option data suggests a small trading range with support coming in at 8300 and resistance around 8500. On Friday, 8300 Put has seen strong Open Interest buildup which suggests immediate support coming in at the level of 8300.
Stock of the week:
Voltas
The stock has given breakout of the rounding bottom on the daily charts on good volumes. The pattern target lies at 324 with the stop loss of 249. The stock can be bought for the targets of 277-283-289 with 266 as stop loss.
Nifty opened the week at 8337, made a high of 8415, low of 8304 and closed the week at 8389. Thus the Nifty closed the week with a gain of 52 points. Bearish doji pattern formed last week got negated this week as the index has formed a small white body candle on the weekly charts and finally Nifty managed to close above the 8360 level. On the daily charts Nifty has Bullish Harami like pattern but it has to be ignored as its in uptrend. Thus both daily and weekly candlestick formations indicate continuation of bullishness in short term.
Nifty has left behind a Bullish Rising Gap between 8198-8181. This gap will not only act as a support but it can also be interpreted as a Measuring Gap and the target as per Gap Theory falls at 8656.
Nifty maintained price above the short term average of 20dma (8132), medium term average of 50dma (8061) and even above the long term average of 200dma (7268). Thus the trend in the short term, medium term and the long term time frame remains bullish.
RSI@71 continues to remain overbought for the last two weeks. The Stochastic oscillator (%K @90) which is overbought for the last three weeks. This in itself is proof of resilient strong bullish momentum. MFI @78 continues to show strength and suggests positive money flow in the market but continues to play with the overbought zone. ADX has further increased to 29, 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. Apart from certain overbought Oscillators, majority of the Oscillators are suggesting bullishness in the short term.
Option data for the current series, shows highest Put Open Interest has shifted to the strike of 8300 and highest Call build-up has shifted to the strike of 8500. Thus Option data suggests a small trading range with support coming in at 8300 and resistance around 8500. On Friday, 8300 Put has seen strong Open Interest buildup which suggests immediate support coming in at the level of 8300.
Stock of the week:
Voltas
The stock has given breakout of the rounding bottom on the daily charts on good volumes. The pattern target lies at 324 with the stop loss of 249. The stock can be bought for the targets of 277-283-289 with 266 as stop loss.
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