The market remained range bound during the week as the gains made were lost subsequently. Earlier in the week the market reached the 61.8% after forming the rising star but failed to build further gains. The market fell sharply on expiry to close below 8200 in the December series. The Bank nifty saw large number of long rollovers where as IT saw bearish rollovers. The index is likely to be range bound as the two major indices will be pulling in opposite directions. As long as 8372 on upper side and 8100 on lower side is not taken out the market is likely remain range bound.
Nifty opened the week at 8255, made a high of 8364, low of 8148 and closed the week at 8200. Thus the Nifty closed the week with a
loss of 25 points. The market has formed a doji on Friday. This when combined with previous candle is bullish harami cross. This is bullish sign. On the weekly charts the market has formed a hammer in sideways move. The long upper shadow indicated selling pressure at higher levels.
The market had left a gap at 8174-8208, which was filled this week. The other gap around the 8082 level will provide strong support. The 61.8% of the Fibonacci retracement of the recent rise from 7961 to 8364 lies at 8100. Thus the market has a strong support zone at 8100-8080. A breach of this will take market lower towards the 7850 levels. The markets looks to be forming a bearish cup & handle pattern on the daily charts. The pattern will complete if & when the market closes below the neckline of 7961.
On the lower side, there exists a critical Bullish Rising gap on the daily charts between 7598-7592 which aided by an intermediate bottom (7540) and 38.2% Retracement of the intermediate rally (7591), forms a strong confluence zone. Thus this confluence zone formed between 7598-7540 will act as Support Zone.
Nifty continues has been trading below the short term average of 20dma (8335) & failed to cross the medium term average of 50dma (8265). However, it continues to remain well above the long term average of 200dma (7592). Thus medium & short term trends are bearish but the long term continues to remain bullish.
RSI @33 has been below the equilibrium line, suggesting sell signal. MFI has also moved to 26, suggesting money flowing out of the market. ADX has reduced to 22, suggesting a further decrease in the strength of uptrend. Directional Indicators continue in sell mode as +DI @24 has crossed below –DI @31. OBV is in sell mode and has moved below the previous two tops. Bollinger band continues to give sell signal as prices failed to cross 20DMA. Thus majority of the Oscillators are suggesting a bearishness in the short term with some in oversold territory.
Option data suggests that highest Put Open Interest build-up has shifted from strike of 8200 to strike of 8000 and highest Call build-up is seen at the strike of 8400. Thus Option data suggests short term trading range with support coming in at 8000 and resistance around 8400.
Stock of The Week:
TVS Motors Ltd.
The Stock has given breakout of the Inverted Head & shoulders pattern on the daily line charts. This is bullish pattern with the target of 297 with the stop loss 246. For the short term buy the stock at cmp and on fall till 257 with the stop loss of 250 for the targets of 270.25-281-288.
Nifty opened the week at 8255, made a high of 8364, low of 8148 and closed the week at 8200. Thus the Nifty closed the week with a
loss of 25 points. The market has formed a doji on Friday. This when combined with previous candle is bullish harami cross. This is bullish sign. On the weekly charts the market has formed a hammer in sideways move. The long upper shadow indicated selling pressure at higher levels.
The market had left a gap at 8174-8208, which was filled this week. The other gap around the 8082 level will provide strong support. The 61.8% of the Fibonacci retracement of the recent rise from 7961 to 8364 lies at 8100. Thus the market has a strong support zone at 8100-8080. A breach of this will take market lower towards the 7850 levels. The markets looks to be forming a bearish cup & handle pattern on the daily charts. The pattern will complete if & when the market closes below the neckline of 7961.
On the lower side, there exists a critical Bullish Rising gap on the daily charts between 7598-7592 which aided by an intermediate bottom (7540) and 38.2% Retracement of the intermediate rally (7591), forms a strong confluence zone. Thus this confluence zone formed between 7598-7540 will act as Support Zone.
Nifty continues has been trading below the short term average of 20dma (8335) & failed to cross the medium term average of 50dma (8265). However, it continues to remain well above the long term average of 200dma (7592). Thus medium & short term trends are bearish but the long term continues to remain bullish.
RSI @33 has been below the equilibrium line, suggesting sell signal. MFI has also moved to 26, suggesting money flowing out of the market. ADX has reduced to 22, suggesting a further decrease in the strength of uptrend. Directional Indicators continue in sell mode as +DI @24 has crossed below –DI @31. OBV is in sell mode and has moved below the previous two tops. Bollinger band continues to give sell signal as prices failed to cross 20DMA. Thus majority of the Oscillators are suggesting a bearishness in the short term with some in oversold territory.
Option data suggests that highest Put Open Interest build-up has shifted from strike of 8200 to strike of 8000 and highest Call build-up is seen at the strike of 8400. Thus Option data suggests short term trading range with support coming in at 8000 and resistance around 8400.
Stock of The Week:
TVS Motors Ltd.
The Stock has given breakout of the Inverted Head & shoulders pattern on the daily line charts. This is bullish pattern with the target of 297 with the stop loss 246. For the short term buy the stock at cmp and on fall till 257 with the stop loss of 250 for the targets of 270.25-281-288.
No comments:
Post a Comment