Weekly Nifty For 2nd-6th March 2015

    The first full budget from the Modi goverment had high expectation from the market. The FM Mr. Arun Jaitley had to balance a tight rope between the expectation & limitations. The Fiscal Deficit target from last budget was met and an even better target of 3.9 was set for 2015-2016. The focus is kept on achieving a double digit growth which currently hovers around 8-8.5%. The fall in inflation from almost double digit to a mere 5% has been key factor, with a easing Monetary policy expectation. The Increased service tax to 14% is definitely going to increase the cost of living. However the corporates can look forward to lowering of tax to 25% in next four years. A definite date was given to GST roll out, while the GAAR was deferred by 2 years.
  
    Nifty opened the week at 8856, made a high of 8941, low of 8669 and closed the week at 8901. Thus the Nifty closed the week with a gain of 68 points. On the daily as well as weekly charts it has made a Spinning Top formation which is a neutral formation. On the daily charts it was with small black body whereas on the weekly charts it was with small white body. This formation can turn bearish when it gets a bearish candlestick pattern as confirmation. Thus daily as well as weekly candlestick patterns are neutral formations and a lot will depend on the direction the market adopts Monday onwards.

    On the monthly chart, Nifty has formed a Last Engulfing Top which required a confirmation in the form of a black body candle in February month but it was not to be as the February month instead formed a small white body candle. Thus the pattern has not been confirmed.

    Nifty tested the short term average of 20dma (8750) but closed the week above it. Besides it continues to remain above the medium term average of 50dma (8560) and even the long term average of 200dma (8028). Thus the trend in the short term, medium term and long term time frame continues to remain bullish.

    RSI @59 suggests that bullish momentum is intact. MFI @73 continues to move higher, indicating positive money flow. Stochastic Oscillator %K @75 continues to remain above %D and hence continues in Buy mode. ADX has gone lower to 20, suggesting uptrend has lost lot of its strength. Directional Indicators continue in Buy mode as +DI remains above –DI. OBV continues in Buy mode making higher top higher bottom formation. Thus majority of Oscillators are suggesting a bullish bias in the near term.

    Option data suggest highest Call Open Interest buildup still remains at the strike of 9000, whereas the highest Put build-up has shifted to the strike of 8500. Thus Option data suggests a trading range with support coming in at 8500 and resistance around 9000. Friday saw strong build-up for 9200 Call which indicates that the level of 9200 might act as strong resistance.

Stock of the Week:
DISH TV

The Stock has been trading in a range of 75-85 for the past month. It has given the range break out on the daily charts with above average volume. The RSI above the 60% indicates bullishness. The Stock can be bought with the stop loss of 81 for the target of 88.85-90.85-92.25-97.1-100.8

Weekly Nifty For 2nd-6th February 2015

    There was a huge reversal seen in this week. The market touched the target zone 8890-9005 and faltered big time. It looks like Obama took all the Indain market gains with him. The market did neither spare the bulls nor bears. Both groups bled on the Dalal street as market lost all gains of last three days in single black Friday.  As the market has repected the upper trendline of the Broadning pattern, the logical step would be market correction. But the main question now is whether it is a Trend Reversal or another sharp Correction.

    Nifty opened the week at 8871, made a high of 8996, low of 8775 and closed the week at 8808. Thus the Nifty closed the week with a loss of 27 points. On the daily charts, Nifty formed a big Opening Black body Marubuzo which completely engulfed previous four days candle. This resulted in Bearish Engulfing pattern on the daily charts. On the weekly chart, it has formed a small black body candle with a longer upper shadow. The upper shadow indicates selling seen at higher levels. Thus daily candlestick pattern points towards bearishness in the near term whereas the weekly study is less bearish than the daily study.

    On the monthly chart, Nifty have registered a candlestick pattern which is like Bullish Engulfing pattern. But it is actually termed as the Double Lovers Suicide pattern which is a bearish pattern. It requires a confirmation in the form of a black body candle in the next month. But if the February month candle closes above the high of this pattern i.e. above 8996 then the above pattern will stand negated.

    As mentioned last week, the target levels 8893-9030 were expected to provide resistance to the index in the near term. Nifty reversed from the target zone and is now heading lower to test the Correction levels. The relevant Retracement levels are placed at 8601-8478-8356. Also the Target zone between 8893-9030 will continue to act as Resistance zone in the near term.

    The weekly Upward Gap between 8531-8530 which is not only a Measuring Gap but will now also act as strong support. The target as per the Gap hypothesis comes at 9100, provided Nifty continues to stay above this weekly gap.

    RSI has just moved lower from being overbought whereas the Stochastic Oscillator %K (87) and MFI (84) are still overbought. ADX has moved higher to 31, 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 @8529, medium term average of 50dma @8422 and also the long term average of 200dma @7828. Thus the trend in the short term, medium term and long term timeframe continue to remain bullish.

    The Volatility Index, India VIX gained over 13% for the week and has finally managed to close above the level of 20. The VIX is now well on its way towards a target of 28. Option data suggest highest Put Open Interest is at 8000 followed by 8500, whereas the highest Call build-up is at the strike of 9000. Thus Option data suggests a wide trading range with immediate support coming in at 8500 and resistance around 9000.

Stock of the week:
Apollo tyres

The Stock has given break out of the Inverted Head & shoulders pattern on the daily charts with good volume. The pattern target lies at 272 with the stop loss of 226. The Stock can be bought at cmp & on fall till 236 with the stop loss of 232 on closing basis for the target of 250-254-259-262.  

Weekly Nifty For 27th-30th January 2015

    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.

Weekly Nifty For 19th-23rd January 2015

    The Week can be divided as pre & post RBI action. The markets were pretty much sideways & struggling to cross 8365 till Wednesday when WPI was declared. Based on the inflation data of past several months the RBI governor kept his promise of cutting rates in January 2015. The rate cut of 25bps on the auspicious day of Makar Sankranti was surprise for the market. The market rejoiced this surprise gift and jumped by more than 200 points.

    Nifty opened the week at 8291, made a high of 8530, low of 8236 and closed the week at 8513. Thus the Nifty closed the week with a gain of 229 points. On the daily charts, Nifty opened with a gap-up on Thursday and formed a big white body candle followed by a small white body candle on Friday. On the weekly charts it has formed a big white body candle negating the bearishness of the previous weeks black candle. Thus daily as well as weekly candlestick study suggests continuation of bullishness in the near term.

    When the market opened with a big gap-up on Thursday, it not only overcame the 61.8% Retracement but also the bearish gap. This signaled the end of correction and start of the prior uptrend. Now the indices are within striking distance of lifetime highs. On the higher side the indices will be targeting the golden ratio target of 8869. The upward Gap (8380-8326) formed on Thursday, will now act as immediate support for the indices. Also both the indices completed a Symmetrical Triangle pattern with potential target 9043.

    RSI @62 is well above the centerline suggesting bullish momentum. Stochastic Oscillator continues in Buy mode as %K @83 continues to remain above %D. MFI @72 too has moved higher suggesting positive money flow. ADX remains at low level of 17, indicating lack of strength in the trend. Directional Indicators continue in Buy mode as +DI remains above –DI. OBV has started making higher top higher bottom formation. Bollinger Band has signaled a Buy on Thursday when the indices closed above the upper band. Thus Oscillators are suggesting continuation of bullishness in the near term.

    On Thursday, the market managed to close above the medium term average of 50dma @8347. It continues to remain above the short term average of 20dma @ 8284 and also the long term average of 200dma @7731. Thus the trend in the medium term timeframe has turned bullish whereas that in the short term as well as the long term timeframe continue to remain up.

    Option data suggest highest Put Open Interest is at 8000 whereas the highest Call build-up has shifted to the strike of 8600. Thus Option data suggests a wide trading range with support coming in at 8000 and resistance around 8600. On Friday, strong Put writing has happened at the strike of 8500, which suggests immediate support at that level.

Stock of the Week:
IDFC

The Stock has been consolidating for the past seven months. It has given breakout of the cup & handle pattern on the daily charts. The pattern target lies at 197 with the stop loss of 153. The stock can be bought with the stop loss of 162 on closing basis for the short term targets of 171.7-175-178.35-180.1

Weekly Nifty For 12th-16th January 2015

    The market has been playing sea-saw for past couple of weeks. It shows signs of weakness and then bounces back sharply & vice-verse. The sheer volatility is making or breaking the trades. After closing above the 8372 the market was looking bullish but post the global turmoil it plunged by 3% to 8065. However it recovered equally sharply to close the week at 8264.

    Nifty opened the week at 8407, made a high of 8445, low of 8065 and closed the week at 8284. Thus the Nifty closed the week with a loss of 174 points. On the daily charts, Nifty has formed a Dragonfly Doji with long lower shadows. On the weekly chart it has formed a black body candle with a long lower shadow which indicates presence of support at lower level. Thus daily as well as weekly candlestick study suggests mild consolidation with no clear direction.

    When the market fell on Tuesday Nifty created a Bearish Gap between 8327-8363. Along with this gap, the 50dma and 61.8% Retracement level of the fall make for a strong confluence zone for the market. Thus 8327-8372 will act as a strong Resistance zone. When the market went down this week, the demand Trendline which had acted as a support to the market previously, once again came to the rescue. Thus if this trendline gets taken out then it will lead to a strong medium term bearish pattern completion. Hence Trendline Support at 8069 need to hold for the uptrend to continue.

    On Friday, the market managed to close above the short term average of 20dma (8223) but failed to conquer the medium term average of 50dma (8334). Also both the indices continue to remain well above the long term average of 200dma (7684). Thus the trend in the short term timeframe has turned bullish whereas that in the medium term timeframe continues to remain down. However the trend in the long term timeframe continues to remain up.

     RSI has given a fresh buy by going above the centerline suggesting bullish momentum. Price ROC remains negative and thus in Sell mode. Stochastic Oscillator continues in Sell mode as %K @37 continues to remain below %D. MFI @62 too has moved higher suggesting positive money flow. ADX has fallen to a level of 18 suggesting that the market is trendless. OBV too continues to remain sideways. Thus Oscillators are giving mixed signals and hence expect uncertainty in the next week.

    This week the Volatility Index struck as it increased more than 30% during the week. If India VIX closes above 19, then the first target for India VIX will be 29. Option data suggest highest Put Open Interest is at 8000 whereas the highest Call build-up has shifted to the strike of 8400. Thus Option data suggests a trading range with support coming in at 8000 and resistance around 8400.

Stock of the Week:

Tech Mahindra

 

The Stock has given breakout of Inverted Head & shoulders pattern on the daily charts with good volume. The pattern target lies at 2810 with the stop loss of 2550. The RSI has also moved above the 60% level indicating bullishness. The stock can be bought at cmp & on fall till 2600 with the stop loss of 2550 for the target of 2733-2775-2810

Weekly Nifty for 5th-9th January 2015

    The market has been in a corrective mode for the past two weeks. It has however finished the correction on the downside and is ready to move higher. In the new year the market took out the resistance of 8300 with a gap up on Friday and closed strongly at 8395. This move has clearly silenced critics predicting major downside for the market.

    Nifty opened the week at 8214, made a high of 8410, low of 8214 and closed the week at 8395. Thus the Nifty closed the week with a gain of 195 points. On the daily charts, market has formed a big Opening white body Marubuzo on Friday which has resulted in it giving a bullish breakout. Also the weekly charts have formed a big White body Marubuzo suggesting that the current uptrend is intact. Thus both weekly as well as daily candlestick patterns suggest bullishness to continue.

    As market closed above 8372, it is now headed higher as the Correction is now complete and the prior uptrend has resumed. Thus Nifty is likely to march towards its previous life highs of 8626 respectively. The market has completed a small bullish Cup & Handle pattern when it closed above 8364. As a result of this pattern, the market is likely to be headed towards a target of 8767 in the near term, as long as Nifty stays above 8147.

    RSI crossed the center line on Wednesday and signaled a Buy suggesting bullish momentum. Stochastic Oscillator continues in buy mode as %K @85 continues to remain above %D. MFI @53 too has signaled a fresh buy on Friday which suggests positive money flow. ADX has fallen to 20, which indicates that the uptrend has lost lot of its strength. Direction Indicators have generated a Buy signal as +DI has gone above –DI. Sell signal given in Bollinger Band has been negated on Friday when the Nifty closed above the mean of 20dma. Thus majority of the Oscillators have turned positive and are suggesting bullishness in the near term.

    This week, Nifty managed to conquer the short term average of 20dma (8265) and the medium term average of 50dma (8310), thereby turning the short term as well as the medium term trend up. Also both the indices continue to remain well above the long term average of 200dma (7641). Thus the trend in the short term as well as medium term time frame has turned bullish whereas trend in the long term time frame continues to remain up.

    Option data suggest highest Put Open Interest is at 8000 whereas the highest Call build-up has shifted to the strike of 8600. Thus Option data suggests a trading range with support coming in at 8000 and resistance around 8600. On Friday there was a surge in Open Interest for the 8400 Put which suggests that this level is likely to act as support.

Stock of the Week:
Ultra tech Ltd

The stock has given breakout of falling channel on the weekly charts with good volumes. The pattern target lies at 3067 with the stop loss of 2500. For the short term the stock can be bought with the stop loss of 2675 on closing basis for the target of 2801-2875-2950

Weekly Nifty For 29th December 2014 - 2nd January 2015

    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.

Weekly Nifty For 22nd-26th December 2014

    A truely volatile week ended in peace. The market took support in a strong confluence zone created by the gap 7936-7974 and trendline support created by recent bottoms. The market tested the 50DMA and has closeed just below the average. With the yearly closing of many foreign funds the market is likely to stay down. Any rise should be used to sell as both short and medium term has terned bearish. The uptrend will resume only after the 8375 is taken out successfully.

    Nifty opened the week at 8160, made a high of 8263, low of 7961 and closed the week at 8225. Thus the Nifty closed the week with a minor gain of 1 point. On the daily charts, Nifty has formed a Bearish Doji which is a bearish reversal pattern requiring a confirmation. On the weekly charts it has formed a small white body candle with long lower shadow which combined with last weeks candle forms an ‘In-Neck’ pattern which is a bearish continuation pattern. A bearish candle as the next week’s formation will confirm continuation of bearishness. Hence both the daily as well as weekly candlestick patterns suggest bearishness to continue.

    Currently the market is witnessing a pull-back in the on-going Correction. The Pull-back levels are 8215-8294-8375. Thus the Correction will be deemed complete only when Nifty closes above 8375. Till then one can expect the on-going fall to continue. A continuation of the downtrend will imply a correction of the rise from 5933. For this the intermediate Correction levels are placed at 7597-7280-6962. On a higher degree the entire rally has started from low of 5118 and the equivalent Correction levels are placed at 7286-6872-6458. A strong confluence zone exist between 7286-7280 which should act as strong support zone.

RSI @ 37 is well below the centerline suggesting bearish momentum. Stochastic Oscillator has turned into buy mode as %K (26) has gone above %D. Also the MFI has dropped further to 30 which suggest money flowing out. ADX has fallen to 30, which indicates that the uptrend has lost some of its strength. Direction Indicators too are in Sell mode as +DI has gone below –DI. Bollinger Band continues in Sell mode given in the previous week. Also the negative divergence observed in RSI seems to be playing out. Thus majority of the Oscillators are suggesting bearishness.

This week, Nifty tested the medium term average of 50dma (8235) and closed below it. Also Nifty continue to remain below the short term average of 20dma (8381). However, it continue to remain well above the long term average of 200dma (7551). Thus the trend in the short term and medium term timeframe has turned bearish whereas trend in the long term timeframe continues to remain up.

This week the Volatility Index saw a surge of around 35% to a level of 19 but closed the week lower. Option data suggest highest Put Open Interest has shifted to 8000 whereas the highest Call build-up is at the strike of 8500. Thus Option data suggests a trading range with support coming in at 8000 and resistance around 8500. On Friday there was a surge in Open Interest for the 8350 Call which will act as immediate resistance.

Stock of the Week:
Central Bank of India

The Stock has given breakout of an Inverted Head & Shoulders pattern on the weekly charts. The pattern target lies at 125.45 with the stop loss of 59. The RSI is also above the 60% indiacting bullish momentum. The stock can be bought at cmp 85.3 as well as on dips to 82.5 with the stop loss of 73 for the targets of 92.25-97.5-106.55-112.25.

Weekly Nifty For 15th-19th December 2014

    The market has give follow through bearish candle for last weeks bearish piercing. Once the previous swin low of 8429 was taken out, the market collapsed like tower of cards. The market has stopped just shy of the Strong support zone 8200-8180. The market had moved up almost vertically and hence some consolidation was required. Thus this Correction is not only a necessity currently, but it will be healthy for the overall well-being of the market. Strong trendline support is seen at the level of Nifty 8110, which if breached then we will need to check for the Correction levels of a higher degree.

    Nifty opened the week at 8538, made a high of 8546, low of 8216 and closed the week at 8224. Thus the Nifty closed the week with a loss of 314 points. On the daily charts, the market has formed a big black body candle whereas on the weekly chart it has formed a big black body candle almost like a Closing Marubuzo. The market has formed Tweezer Top on both the daily as well as the weekly chart. This is a bearish reversal pattern. It will get negated only when Nifty closes above 8626. On the daily charts, the Tweezer top was followed by Three Black Crows formation. Thus daily as well as weekly charts suggest bearishness to continue in the near term.

    Nifty 8100 is a critical level, not only it is a strong Trendline support level, but also a Bearish Rising Wedge pattern completion level. The market is likely to test the Support zone between 8200-8175 followed by the above mentioned Trendline support levels which is at 8110. Correction levels as per Fibonacci Retracement theory remains at 8281-8175-8068.

    Nifty has closed below the short term average of 20dma (8452) but it has managed to stay just above the medium term average of 50dma (8216). But it continue to remain well above the long term average of 200dma (7500). Thus the trend in the short term timeframe has turned bearish whereas trend in the long term timeframe continues to remain up.

    RSI has dropped below the 40% support line indicatin bearishneass. Stochastic Oscillator too continues in Sell mode as %K is below %D. MFI has fallen below the equilibrium line to 37 which suggest money flowing out. ADX has fallen to 29, which indicates that the uptrend has lost some of its strength. Direction Indicators too are in Sell mode as +DI has gone below –DI. Bollinger Band has given a Sell signal on Thursday when price closed below the lower Band. Majority of the Oscillators have turned bearish while RSI is exhibiting negative divergence.

    Option data suggest highest Put Open Interest has shifted to 8100 whereas the highest Call build-up has shifted to the strike of 8500. Thus Option data suggests a trading range with support coming in at 8100 and resistance around 8500.

Stock of the Week:
Aditya Birla Nuvo

The Stock has been moving in rising channel since May 2014. It has now given breakdown of this channel on the weekly charts with good volume. The pattern target lies at 1415 with the stop loss of 1830. The Daily RSI has also moved below the 40% support level, indicatin bearishness. The Stock can be shorted at cmp and on rise till 1710 with the stop loss of 1750 on closingg basis for the targets of 1634-1577-1542

Weekly Nifty For 8th-12th December 2014

    The market stayed sideways for the entire week, trading in the range of 8500-8630. This looks like a rest period for the market before further move up. On weekly charts the market has formed Bearish piercing on above average volume. But a confirmation in the form of a big black body candle or atleast the breach of 8425 is necessary. 

    Nifty opened the week at 8605, made a high of 8626, low of 8504 and closed the week at 8538. Thus the Nifty closed the week with a loss of 50 points. On the daily charts, it has formed a black body candle but it is not a bearish formation. Interestingly, all the five candle bodies this week are Inside Candles i.e. within the trading range of the candle formed on last Friday; which simply shows that the entire week was like a rest week. On the weekly chart, Nifty has formed a black body candle which in this case is a bullish continuation pattern. Thus the daily and weekly candlestick study does not suggest any bearishness.

    Nifty continue to hover around the critical Rising Trendline. Minor profit booking was observed after reaching near the immediate target of 8656 respectively, which is as per Gap theory. Above which one can expect both the indices to move towards intermediate rally target (golden ratio) which is at 8893. Short term Correction will start only when Nifty closes below the level of 8429. In such a case the Correction levels will be at 8281-8175-8068. The first bullish Rising Gap between 8198-8181 is coinciding with the 50% Correction level mentioned above and hence a strong Support zone is formed between 8198-8175.

    Nifty continues to remain above the short term average of 20dma (8461), medium term average of 50dma (8191) and even above the long term average of 200dma (7443). Thus the trend in the short term, medium term and the long term time frame continues to remain bullish.

    RSI has dropped slightly to 63 but it still suggests bullish momentum. The Stochastic oscillator has given a Sell signal as %K (71) has gone below the signal line %D. Also the MFI has fallen to 56 but it still suggests positive money flow in the market. ADX has further increased to 36, 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 and are exhibiting negative divergence of the first order, majority of them are suggesting bullishness in the short term.

Option data suggest highest Put Open Interest is at the strike of 8500 and highest Call build-up is at the strike of 8600. Thus Option data suggests a very narrow trading range with support coming in at 8500 and resistance around 8600.

Stock of the Week:
Hind Zinc Ltd.

The has been consolidating in the form of a Symmetrical triangle for the past six months after hitting the high of 184. It has broken the consolidation with good volumes on the weekly charts. The pattern target lies at 209 with the stop loss of 162. For the short term the stock can be bought for the targets of 187-192-196-200 with the stop loss of 167.  

Weekly Nifty For 1st-5th December 2014

    The Bulls took the market by horn which took the market 100 points up. This helped market not only close above the upper trendline resistance  of rising channel but also the 8655 is within reach. Nifty opened the week at 8490, made a high of 8617, low of 8429 and closed the week at 8588. Thus the Nifty closed the week with a gain of 111 points. After testing the rising Trendline with indecisive candles for first four days of the week, Nifty formed a big Opening White body Marubuzo on Friday which helped achieve the breakout by closing above that Trendline. On the weekly chart, Nifty has formed a real white body candle. This is second successive real body candle in last two weeks which points towards more upside in the near term. Thus both daily and weekly candles suggest continuation of bullishness.

    As mentioned earlier, a decisive breakout above the rising Trendline is likely to propel the index to much higher levels. Thus one can expect Nifty to move towards an immediate target of 8656, which is target as per Gap theory. Above which one can expect it to move towards intermediate rally target (golden ratio) which is at 8893.

    Nifty continues to remain above the short term average of 20dma (8399), medium term average of 50dma (8140) and even above the long term average of 200dma (7380). Thus the trend in the short term, medium term and the long term time frame remains bullish.

    RSI @ 74 is in over bought zone for past 4 weeks. Stochastic oscillator %K (83) also continue to remain overbought since last one month. However MFI @70 suggests positive money flow in the market but continues to play with the overbought zone. ADX has further increased to 33, 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 December series, shows highest Put Open Interest continues at the strike of 8500 and highest Call build-up has shifted higher to the strike of 8600. Thus Option data suggests a very narrow trading range with support coming in at 8500 and resistance around 8600. On Friday, 8800 Call has seen strong Open Interest buildup which suggests that the market might find next resistance at the level of 8800.

Stock of the week:
Bank of Baroda

The Stock has given a Bullish Flag Pole pattern breakout on the daily charts with huge volume. The RSI has also bounced from the support of 60%, indicating bullishness. The pattern target lies at 1286 with stop loss of 1000. For the short term the stock can be bought with the stop loss of 1021 at cmp and on fall till 1060 for the target of 1108-1125-1140-1174.

Weekly Nifty For 24th-28th November 2014

    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.

Weekly Nifty For 17th-21st November 2014

    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.

Weekly Nifty For 10th-14th November 2014

    The market had a spectacular rally on Diwali and a fallow through was seen in the expiry week. In these two weeks market moved from 7856 to 8350 i.e. around 500 points or 6.5% in only 9 trading sessions. After this humungous rally the market took breather this week. Most of the daily candles were neutral this week, indicating a close fight between bulls and bears. The market consolidation should be bought into on every dip for further gains in coming weeks.
   
    Nifty opened the week at 8348, made a high of 8365, low of 8290 and closed the week at 8337. Thus the Nifty closed the week with a gain of 15 points. It has formed neutral formation on all the three working days of the week and even on the weekly charts. Nifty has formed a small body Spinning Top on Friday; but that seemed to be the case on previous two days also, almost forming a rare Bearish Tri-Star formation. This requires a confirmation in the form of a real black body candle on Monday. On the weekly charts, Nifty have formed Bearish Doji formation. This formation also requires confirmation in the form of black body candle in the next week. Thus next week’s candle formation will be critical for the fate of short term trend.

    Last week Nifty 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. Nifty continues to remain above the short term average of 20dma (8010), medium term average of 50dma (8014) and even above the long term average of 200dma (7215). Thus the trend in the short term, medium term and the long term timeframe remains bullish.

    RSI @ 71 has turned overbought and so has the Stochastic oscillator (%K@95). But both of them still continue to show strong bullish momentum. MFI @71 continues to show strength and suggests positive money flow in the market. ADX has improved to 26, which indicates that the uptrend is now gaining strength. 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 at the strike of 8000 and highest Call build-up has shifted to the strike of 8400. Thus Option data suggests a trading range with support at 8000 and resistance around 8400. On Friday, 8400 Call has seen strong Open Interest buildup which suggests immediate resistance at the level of 8400.

Stock of the week:

Colgate Palmolive

The Stock has given break out of the Flag pole pattern on the weekly charts with good volumes. The pattern target lies at 2100 with the stop loss of 1700. For the short term buy this stock with the stop loss of 1740 on closing basis for the targets of 1825-1875-1918

Weekly Nifty For 3rd-8th November 2014

    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.

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.

Weekly Nifty For 27th-31st Oct 2014

    The Diwali Dhamaka Started with a bang on Monday with 117 points gap up. With this the market gave breakout of falling wedge with target of 8103. The government's decision of De-allocated Coal Block e-auctioning along with raising Defense FDI limit to 49% & allowing private Indian companies to build defense equipments was real Diwali Fire-cracker. The global markets kept its support and market gained 3%.

    Nifty opened the week at 7857, made a high of 8031, low of 7857 and closed the week at 8014. Thus the Nifty closed the week with a gain of 235 points. The market has formed a big white body candle after three consecutive spinning tops. This is bullish sign. On the daily charts the market has formed a spinning top on Wednesday & Thursday. This is neutral formation, but with high bottoms.

    This week the market gave breakout of falling wedge pattern on the daily charts. The pattern price target lies at 8103 and remains valid as long as the market stays above 7830. The market has already tested the 61.8% of the Fibonacci Retracement of the fall from 8180 to 7722. A decisive close above this level will take the market towards the 8130 levels.

    Nifty had broken down the Rising channel last week formed over last five months. As per this breakout, Nifty is now headed lower towards a potential target of 7381. This pattern target remains intact as long as nifty trades below the 8180 levels. The markets are correcting the upward rally from an intermediate low of 6638 to a high of 8180 and the relevant Correction levels are at 7591-7409-7227.

    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 finally broken back abov the medium term average of 50dma (7934) and the short term average of 20dma (7925). However, both the indices continue to remain well above the long term average of 200dma (7128). Thus all the trend in the short and medium term as well as the long term are bullish.

    RSI @52 has moved above the equilibrium line, suggesting fresh buy signal. MFI has also moved above the equilibrium line at 53, suggesting money flowing into the market. ADX has reduced to 18, suggesting a further decrease in the strength of uptrend. Directional Indicators continue in buy mode as +DI @26 has crossed above –DI @24. OBV is in buy mode and has moved above the previous two tops. Bollinger band indicates prices have moved into a neutral territory as the sell signal is negated. Thus Oscillators are suggesting a bullish bias in the short term.

Option data suggests that highest Put Open Interest build-up has shifted from strike of 7800 to strike of 7900 and highest Call build-up is seen at the strike of 8100. Thus Option data suggests short term trading range with support coming in at 7900 and resistance around 8100. On Thursday, 8050 Call has seen strong Open Interest buildup which suggests immediate resistance at the level of 8050.

Stock of The Week:
Larson & Tubro


              The stock has been falling in a channel for past 4 months, has finally broken out on the weekly charts. The pattern target lies at 1800 with the stop loss of 1475. For the short term the stock can be bought at cmp and on fall towards 1520 with the stop loss of 1500 on closing basis for the target of 1583-1600-1627-1644.

Weekly Nifty For 20th-23rd Oct 2014

    The Market is grinding lower and lower each week. New bearish patterns are formed and broken down with lower and lower price targets. The gobal weakness along with lack of new developement policy actions is pulling the market downwards. This Diwali looks poised to be celebratory for the Bears. After the spectacular rally in the first half of the year, the market is now correcting the parabolic up move. This correction is good from long term point Bull market, as it removes the weak hand or excess from the market.

    Nifty opened the week at 7831, made a high of 7928, low of 7723 and closed the week at 7779. Thus the Nifty closed the week with a loss of 80 points. The index has formed a black body Spinning Top. This is the third week when a similar formation has been observed but the index is making lower bottoms on weekly basis. On the daily charts, Nifty has formed a small white body candle which is forming a Thrusting pattern on daily charts, which is a bearish continuation pattern. Hence candlestick pattern suggests bearishness in the near term.

    Nifty continue its downward journey this week after completing a bearish breakout to the Rising Channel formation formed over last five months. As per this breakout, Nifty is now headed lower towards a potential target of 7381. The markets are correcting the upward rally from an intermediate low of 6638 to a high of 8180 and the relevant Correction levels are at 7591-7409-7227.

    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 continue to remain below the medium term average of 50dma (7917) and the short term average of 20dma (7942). However, it continue to remain well above the long term average of 200dma (7103). Thus the trend in the short and medium term is bearish while that in the long term remains bullish.

    RSI @41 continues to remain below the equilibrium line, suggesting bearish momentum. MFI continues to move lower and is at 30, suggesting money flowing out. ADX has reduced to 22, suggesting a further decrease in the strength of uptrend. Directional Indicators continue in Sell mode as +DI remains below –DI. OBV is in Sell mode and is making lower top lower bottom formation. Bollinger band continues with its Sell signal given three weeks back. Thus Oscillators are suggesting a bearish bias in the short term.

    Option data suggests that highest Put Open Interest build-up has shifted from strike of 7800 to strike of 7700 and highest Call build-up is seen at the strike of 8000. Thus Option data suggests short term trading range with support at 7700 and resistance around 8000. On Friday, 7900 Call has seen strong Open Interest buildup which suggests immediate resistance at the level of 7900.

Stock of the week:
LICHSGFIN

The stock has give breakout of weekly Inverted Head & shoulders pattern. The pattern target lies at 386 with the stop loss of 318. In the short term the stock can be bought with the stop loss of 325 on closing basis for the targets of 341-347-353-359

Weekly Nifty For 13th-17th Oct 2014

    The market saw red inspite of the spectacular performance from Infy on the back of the weak global ques. The Infosys result not only beat the street expectations but also gave strong guidenace. The cherry on the top of the cake for the investors came in the form of 1:1 bonus & an interim dividend of Rs. 30. This will definitely raise bar for the expectation from the other IT companies.

    Nifty opened the week at 7897, made a high of 7972, low of 7815 and closed the week at 7859. Thus the Nifty closed the week with a loss of 86 points. Nifty has formed a black body Spinning Top on the weekly charts. Last week had similar candlestick pattern and hence next week’s candlestick pattern will be of great significance. A bearish formation next week will signal further downside in the near term. On the daily charts, Nifty has formed Opening White body Marubuzo on Thursday and an big Black body candle on Friday, indicating nullification of the bullishness gained on Thursday. The market is now ready to move lower in the short term.

    This week finally the Nifty managed to complete a bearish breakout to the Rising Channel formation formed over last five months. As per this breakout, Nifty is now headed lower towards a potential target of 7381.  In the near term, Nifty is correcting the upward rally from an immediate low of 7540 to a high of 8180 and the relevant Correction levels are at 7935-7860-7784.

    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. The market has already achieved the Rounding bottom target of 8145. Now it is headed towards next target which is Flag pattern target. The target for this pattern is at 8304. The targets will be achieved as long as Nifty remains above 7855.

    For the first time since the start of the bullish rally, both the indices have managed to close the week below the medium term average of 50dma (7913) besides continuing to remain lower than the short term average of 20dma (7995). However, both the indices continue to remain well above the long term average of 200dma (7071). Thus the trend in the short and medium term is bearish while that in the long term remains bullish.

    RSI @43 continues to remain below the equilibrium line, suggesting bearish momentum. RSI on the weekly charts has gone below the support of 60% for the first time since February 2014. MFI @ 38 continues to remain below the centerline, suggesting money flowing out. ADX has reduced further to 21, suggesting a further decrease in the strength of uptrend. Directional Indicators continue in Sell mode as +DI remains below –DI. OBV is in Sell mode and is making lower top lower bottom formation. Bollinger band continues with its Sell signal given two weeks back. Thus Oscillators are suggesting a bearish bias in the short term.

    Option data suggests that highest Put Open Interest build-up is at the strike of 7800 and highest Call build-up is seen at the strike of 8200. Thus Option data suggests short term trading range with support coming in at 7800 and resistance around 8200. On Friday, 7900 Call has seen strong Open Interest buildup which suggests immediate resistance at the level of 7900.


Stock of The week:
HDFC LTD

The Stock has given break down of the head & shoulders pattern on the Daily charts. The pattern target lies at 852 with the stop loss of 1062. For the short term the stock can be shorted with the stop loss of 1040 for the target of 987-967-940.

Weekly Nifty For 7th-10th Oct 2014

    The market remained remained volatile but within the range 7840-8050. The RBI credit policy on Tuesday can be treated as a non event. The Supreme court verdict out on the coal block allocation, many main stream companies are facing the brunt of the deallocation of their coal blocks. Till the time a new transperent policy for the reallocation of these coal blocks in not out, the market is likely to range bound with negative bias.
    Nifty opened the week at 7978, made a high of 8030, low of 7923 and closed the week at 7945. Thus the Nifty closed the week with a loss of 23 points. Both the daily and weekly charts have formed small black body candles in line with the short term bearishness.
    In the immediate term, the markets are correcting the upward rally from an immediate low of 7540 to a high of 8180 and the relevant Correction levels are at 7935-7860-7784. Last week both the indices managed to bounce back after taking support at the 50% Retracement level. The market also managed to achieve the target of rising channel breakdown at 7840.
    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. The short term trend for the market is already down but the medium term trend is likely to reverse if the Nifty closes below 7540 and Sensex below 25232. The market has already achieved the Rounding bottom target of 8145. Now it is headed towards next target which is Flag pattern target. The target for this pattern is at 8304. The targets will be achieved as long as the Nifty remains above 7855.
    This week, Nifty has managed to remain above the medium term average of 50dma (7904), but continues to remain below the short term average of 20dma (8044). It however remains well above the long term average of 200dma (7037). Thus the trend in the short term remains down, whereas the trend in the medium term and long term timeframe continues to remain bullish.
    RSI continues to remain below the equilibrium line at 46, suggesting bearish momentum. MFI even though has moved higher but still remains below the centerline and is at 43, suggesting money flowing out. ADX has reduced further to 22, suggesting a further decrease in the strength of uptrend. Directional Indicators continue in Sell mode as +DI remains below –DI. OBV continues in sideways mode but is yet to make a lower bottom. Bollinger band continues with its Sell signal given last week. Thus Oscillators are suggesting a bearish bias in the short term.
    Option data suggests that highest Put Open Interest build-up is at the strike of 7800 and highest Call build-up is seen at the strike of 8200. Thus Option data suggests short term trading range with support coming in at 7800 and resistance around 8200. On Friday, 7500 Put has seen strong Open Interest buildup which suggests next strong support below the level of 7800.

Stock of The Week
Infosys.

The Stock has been given a breakout of rounding bottom pattern on the daily charts. The pattern target lies at 4750 level with the stop loss of  3600 on closing basis. For the short term the stock can be bought with the target of 3867-3935-3975-4000 with the stop loss of 3788.

Weekly Nifty For 29th Sept-3rd Oct 2014

    The market had been falling steadily for the past week. The market went below its 50DMA support but baounced back sharply on Friday. The international Rating agency S&P upgraded India Outlook to Stable from Negative on the back of improved political setting and a more conducive environment for economic reforms, thus providing a boost to growth prospects and improved fiscal management. This helped Bulls to make a roaring comeback in last hour of Friday's session. The market has taken support at the lower trendline of the rising channel as shown below.

    Nifty opened the week at 8084, made a high of 8159, low of 7841 and closed the week at 7968. Thus the Nifty closed the week with a loss of 153 points. Nifty rebounded sharply in the last one hour of trade witnessing an increase of more than 100 points from the lows of the day and in the process snapping a three day fall. But still it failed to register a Bullish Reversal candlestick pattern on the daily charts. Nifty has made a white body candle almost like Thrusting which is a bearish continuation pattern. On the weekly charts it has formed a black body candle with long shadows. Thus both daily and weekly candlestick pattern suggests continuation of bearishness in the short term.

    The weekly gap between 7984-7968 got filled this week and hence the target of 8412 as per gap theory, stands negated. 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.
    In the short term, the markets are correcting the upward rally from an immediate low of 7540 to a high of 8180 and the relevant Correction levels are at 7935-7860-7784. This week the markets have taken support at the 50% Retracement level and rebounded. The short term trend for the market is already down but the medium term trend is likely to reverse if the Nifty closes below 7540. The market has already achieved the Rounding bottom target of 8145. Now it is headed towards next target which is Flag pattern target. The target for this pattern is at 8304. The targets will be achieved as long as the Nifty remains above 7855.

    This week, Nifty has managed to test and take support at the medium term average of 50dma (7885). Whereas both the indices continued to remain below the short term average of 20dma (8062) and remain well above the long term average of 200dma (7013). Thus the trend in the short term remains down, whereas the trend in the medium term and long term timeframe continues to remain bullish.

    RSI is below the equilibrium line suggesting bearish momentum. MFI has reduced further to 28, suggesting money flowing out. ADX has reduced to 24, suggesting a decrease in the strength of uptrend. Directional Indicators are now in Sell mode as +DI has gone below –DI. OBV has moved lower but is still in sideways mode. Bollinger band has given a Sell signal on Thursday when the Nifty closed below the lower Bollinger band. Thus Oscillators are suggesting a bearish bias in the near term.

    Option data suggests that highest Put Open Interest build-up is at the strike of 7800 and highest Call build-up has shifted to the strike of 8200. Thus Option data suggests a short term trading range with support coming in at 7800 and resistance around 8200.

Stock of The Week:
HDFC BANK
The stock has been in a range for past two weeks. It has now broken out of the consolidation. The pattern target lies at 920 with the stop loss of 855. For short term the stock can be bought with the stop loss of 861 for the targets of 885-892-900.