The market rejoiced the Republic day early with a hue bang. The ECB's decision to provide further stimulas to Greece provided market with further bullish trust. The Nifty ismoving towards the target of 8890 with the speed of bullet train. The market faces strong resistance at the upper boundary of Broadening pattern.
Nifty opened the week at 8550, made a high of 8866, low of 8531 and closed the week at 8835. Thus the Nifty closed the week with a gain of 322 points. On the daily charts, Nifty opened with a gap up on Friday and formed a small white body Spinning Top. On the weekly charts, Nifty has formed a big Opening White body Marubuzo. Thus daily as well as weekly candlestick study suggests continuation of bullishness in the near term.
Nifty had completed a Symmetrical Triangle pattern last week and are now moving towards achieving pattern target of 9030. Also the market is close enough to touch the golden ratio target of 8890. the market is very close to the upper boundary of the Broadening Rising pattern which is at 8956. This upper boundary which is a Rising Trendline has been providing resistance to the indices for the last seven months. Thus the market is likely to be tested at the Target zone of 8893-9030.
Nifty has formed a weekly Upward Gap between 8531-8530 which will not only act as immediate support but also this can be termed as a Measuring Gap. The target as per the Gap hypothesis comes at 9100, provided the index continues to stay above this weekly gap.
RSI @73 Stochastic Oscillator %K @97 and MFI @80 are all overbought. It indicates that there can be reaction in the indices and one has to be cautious. ADX has moved higher to 25, suggesting uptrend is gaining strength. Directional Indicators continue in Buy mode as +DI remains above –DI. OBV and Bollinger Band continue in Buy mode. Thus certain Oscillators are overbought suggesting one has to be cautious in the near term.
Nifty continues to remain above the short term average of 20dma @8403, medium term average of 50dma @8383 and also the long term average of 200dma @7784. Thus the trend in the short term, medium term and long term timeframe continue to remain bullish.
Option data suggest highest Put Open Interest is at 8000 whereas the highest Call build-up has shifted to the strike of 9000. Thus Option data suggests a wide trading range with support coming in at 8000 and resistance around 9000. On Friday, strong Put writing has happened at the strike of 8800, which suggests immediate support at that level.
Stock of the Week:
Adani Port & sez
The Stock has given break out of the flag-penant pattern on the daily charts with huge volume. The pattern target lies at 420 with the stop loss of 322. For the short term the stock can be bought at cmp & on fall till 340 with the stop loss of 330 on closing basis for the target of 359-368-383.
Nifty opened the week at 8550, made a high of 8866, low of 8531 and closed the week at 8835. Thus the Nifty closed the week with a gain of 322 points. On the daily charts, Nifty opened with a gap up on Friday and formed a small white body Spinning Top. On the weekly charts, Nifty has formed a big Opening White body Marubuzo. Thus daily as well as weekly candlestick study suggests continuation of bullishness in the near term.
Nifty had completed a Symmetrical Triangle pattern last week and are now moving towards achieving pattern target of 9030. Also the market is close enough to touch the golden ratio target of 8890. the market is very close to the upper boundary of the Broadening Rising pattern which is at 8956. This upper boundary which is a Rising Trendline has been providing resistance to the indices for the last seven months. Thus the market is likely to be tested at the Target zone of 8893-9030.
Nifty has formed a weekly Upward Gap between 8531-8530 which will not only act as immediate support but also this can be termed as a Measuring Gap. The target as per the Gap hypothesis comes at 9100, provided the index continues to stay above this weekly gap.
RSI @73 Stochastic Oscillator %K @97 and MFI @80 are all overbought. It indicates that there can be reaction in the indices and one has to be cautious. ADX has moved higher to 25, suggesting uptrend is gaining strength. Directional Indicators continue in Buy mode as +DI remains above –DI. OBV and Bollinger Band continue in Buy mode. Thus certain Oscillators are overbought suggesting one has to be cautious in the near term.
Nifty continues to remain above the short term average of 20dma @8403, medium term average of 50dma @8383 and also the long term average of 200dma @7784. Thus the trend in the short term, medium term and long term timeframe continue to remain bullish.
Option data suggest highest Put Open Interest is at 8000 whereas the highest Call build-up has shifted to the strike of 9000. Thus Option data suggests a wide trading range with support coming in at 8000 and resistance around 9000. On Friday, strong Put writing has happened at the strike of 8800, which suggests immediate support at that level.
Stock of the Week:
Adani Port & sez
The Stock has given break out of the flag-penant pattern on the daily charts with huge volume. The pattern target lies at 420 with the stop loss of 322. For the short term the stock can be bought at cmp & on fall till 340 with the stop loss of 330 on closing basis for the target of 359-368-383.
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