The market is making new life time highs, but the momentum has definitely slowed quite a bit. Although its clear that the Bull trend is here for good, the rally is coming on the back of decreasing number of stocks. The up surge in global markets coupled with the reducing commodity prices is pushing the Indian markets up. However the falling prices of Indian Rupee against the US dollars is a point of concern. Any fall towards the up moving supports is being bought into, indicates bullish psychology of the investors.
Nifty opened the week at 8378, made a high of 8489, low of 8349 and closed the week at 8477. Thus the Nifty closed the week with a gain of 88 points. After a series of doji (small body candles), Nifty has finally formed a big white body candle on Friday which falls in favor of the bulls. On weekly basis, after two small body candles in the previous two weeks, Nifty has formed a big white body candle this week. Thus both daily and weekly candles suggest continuation of bullishness.
Nifty is moving upwards towards the a rising Trend line which is currently placed at 8575. A rising trendline has the ability to attract prices towards it but it requires lot of strength to achieve a bullish breakout. A bullish breakout will take index 8654 and 8890 levels. 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 8654.
Nifty continues to trade above the short term average of 20dma (8278), medium term average of 50dma (8101) and even above the long term average of 200dma (7321). Thus the trend in the short term, medium term and the long term time frame remains bullish.
RSI @ 72 is in overbought zone indicating continued bullishness. Stochastic oscillator %K @86 is above %D and continue to remain overbought for the last three weeks. However MFI@71 suggests positive money flow in the market but continues to play with the overbought zone. ADX has further increased to 31, 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 current series, shows highest Put Open Interest continues at the strike of 8300 and highest Call build-up at the strike of 8500. Thus Option data suggests a small trading range with support at 8300 and resistance around 8500. On Friday, 8650 Call has seen strong Open Interest buildup which suggests that the market might find resistance at the level of 8650.
Stock of the Week:
STC India
The stock has been consolidating in the form of the falling wedge. The stock has given breakout of this pattern on daily charts with good volume. The pattern target lies at 245 with the stop loss of 197. For short term the stock can be bought with the stop loss of 200 on closing basis with the target of 216-223-234.
Nifty opened the week at 8378, made a high of 8489, low of 8349 and closed the week at 8477. Thus the Nifty closed the week with a gain of 88 points. After a series of doji (small body candles), Nifty has finally formed a big white body candle on Friday which falls in favor of the bulls. On weekly basis, after two small body candles in the previous two weeks, Nifty has formed a big white body candle this week. Thus both daily and weekly candles suggest continuation of bullishness.
Nifty is moving upwards towards the a rising Trend line which is currently placed at 8575. A rising trendline has the ability to attract prices towards it but it requires lot of strength to achieve a bullish breakout. A bullish breakout will take index 8654 and 8890 levels. 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 8654.
Nifty continues to trade above the short term average of 20dma (8278), medium term average of 50dma (8101) and even above the long term average of 200dma (7321). Thus the trend in the short term, medium term and the long term time frame remains bullish.
RSI @ 72 is in overbought zone indicating continued bullishness. Stochastic oscillator %K @86 is above %D and continue to remain overbought for the last three weeks. However MFI@71 suggests positive money flow in the market but continues to play with the overbought zone. ADX has further increased to 31, 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 current series, shows highest Put Open Interest continues at the strike of 8300 and highest Call build-up at the strike of 8500. Thus Option data suggests a small trading range with support at 8300 and resistance around 8500. On Friday, 8650 Call has seen strong Open Interest buildup which suggests that the market might find resistance at the level of 8650.
Stock of the Week:
STC India
The stock has been consolidating in the form of the falling wedge. The stock has given breakout of this pattern on daily charts with good volume. The pattern target lies at 245 with the stop loss of 197. For short term the stock can be bought with the stop loss of 200 on closing basis with the target of 216-223-234.
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