The Diwali Has brought out the bull spirit back with a bang. The expiry was looking good but on Friday the firecrackers were simply unstoppable. This was the strongest week in past couple and it helped market to close at an all time high with across the market rally. The Strong Global financial markets as well as Modi Govt.'s start of the delivering of the development promises, ended the month on a very strong footing. Market has swiftly resumed its upward journey after undergoing a correction in the short term and is now back to routine of making frequent new highs.
Nifty opened the week at 8064, made a high of 8330, low of 7985 and closed the week at 8322. Thus the Nifty closed the week with a gain of 308 points. It has closed the week on a high and registered a big Closing White body Marubuzo. Even the monthly closing was at its top, thus forming a Closing White body Marubuzo on the monthly charts. On the daily charts, Nifty has formed Opening White body Marubuzo on two consecutive days i.e. Thursday and Friday. Thus both daily as well as weekly candlestick patterns suggest bullishness to continue in the near term.
Nifty has left behind a Bullish Rising Gap between 8198-8181 on Friday. 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. The market has achieved the target of the Flag pattern when it reached 8304.
Nifty is now trading above its short term average of 20dma (7953), the medium term average of 50dma (7973), and the long term average of 200dma (7172). Thus the trend in the short and medium term has turned up while that in the long term remains bullish.
RSI @ 70 is just turning overbought but still shows tremendous bullish momentum. Stochastic which is also overbought at a very high level of 98. MFI @64 continues its journey upwards suggesting positive money flow in the market. ADX has moved to 21 suggesting that the uptrend is gaining strength. Directional Indicators continue in buy mode as +DI remains above –DI. Bollinger Band has signaled a Buy on Wednesday when price closed above the upper band. Except for certain Oscillators which are overbought, majority of the Oscillators are suggesting bullishness to continue in the short term.
Option data for the November series, suggests highest Put Open Interest at the strike of 8000 and highest Call build-up at the strike of 8500. Thus Option data suggests a trading range with support at 8000 and resistance at 8500. On Friday, 8200 Put has seen strong Open Interest buildup which suggests immediate support at the level of 8200.
Nifty opened the week at 8064, made a high of 8330, low of 7985 and closed the week at 8322. Thus the Nifty closed the week with a gain of 308 points. It has closed the week on a high and registered a big Closing White body Marubuzo. Even the monthly closing was at its top, thus forming a Closing White body Marubuzo on the monthly charts. On the daily charts, Nifty has formed Opening White body Marubuzo on two consecutive days i.e. Thursday and Friday. Thus both daily as well as weekly candlestick patterns suggest bullishness to continue in the near term.
Nifty has left behind a Bullish Rising Gap between 8198-8181 on Friday. 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. The market has achieved the target of the Flag pattern when it reached 8304.
Nifty is now trading above its short term average of 20dma (7953), the medium term average of 50dma (7973), and the long term average of 200dma (7172). Thus the trend in the short and medium term has turned up while that in the long term remains bullish.
RSI @ 70 is just turning overbought but still shows tremendous bullish momentum. Stochastic which is also overbought at a very high level of 98. MFI @64 continues its journey upwards suggesting positive money flow in the market. ADX has moved to 21 suggesting that the uptrend is gaining strength. Directional Indicators continue in buy mode as +DI remains above –DI. Bollinger Band has signaled a Buy on Wednesday when price closed above the upper band. Except for certain Oscillators which are overbought, majority of the Oscillators are suggesting bullishness to continue in the short term.
Option data for the November series, suggests highest Put Open Interest at the strike of 8000 and highest Call build-up at the strike of 8500. Thus Option data suggests a trading range with support at 8000 and resistance at 8500. On Friday, 8200 Put has seen strong Open Interest buildup which suggests immediate support at the level of 8200.
Stock of the Week:
J M Financials
The Stock has been consolidating in the range of 34-46 for the past five months. It has now broken out of this sideways action on good volumes. It has pattern target of 58 with the stop loss of 44.25. For the short term the stock can be bought with the target of 49-51.75-53 with the stop loss of 45.95.
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