The market had been range bound most of the week , but in the process of making new life time highs albeat of low magnitude. The closed close to the 8000 levels and gave highest weekly close as well. The broder market was seen ralling this week, with the mid-cap index rising by almost 4%. Any deep in the market should be bought into. The bank nifty led the rally with good participation from the PSUs. The declining oil prices in the global market is likely to boost the Oil Marketing Companys.
Nifty opened the week at 7785, made a high of 7929, low of 7779 and closed the week at 7913. Thus the Nifty closed the week with a gain of 122 points. After a strong move on Monday, the market has consolidated for rest of the week. On the weekly charts, Nifty has made an Opening White body Marubuzo. Thus the weekly pattern indicates the continuation of bullishness in the near term.
In March this year the market had given a very strong bullish breakout for multiple patterns on multiple timeframes. One of the formations was a Bullish Rounding Bottom on the weekly charts which has a target of 8145. A Flag pattern will get completed once Nifty closes above 7922. The target for this pattern will at 8304.
Nifty has completed a Bullish Island Reversal and thereby generating a Buy signal. The signal will stand negated if Nifty closes below 7540. The market is constantly making higher top higher bottom formations and the short term trend is likely to reverse if the Nifty closes below 7540. A breach of this support is likely to test the Support zone between 7441-7394 which is due to a confluence of the 61.8% correction level with intermittent bottoms at 7441 & 7422. On a higher scale, a very strong Support zone is formed between 7112-7067. This is a result of confluence of 38.2% Retracement of the higher rally (7112), 61.8% Retracement of the immediate rally (7097) and the start of the intermediate Bullish Rising Gap (7067). The long term trend will continue to remain bullish as long as this Support zone is held.
This week, Nifty has managed to remain above the short term average of 20dma (7757) as well as the medium term average of 50dma (7667). Both the indices continue to remain well above the long term average of 200dma (6785). Thus the trend in the short term, medium term and long term continues to remain bullish.
RSI @62 indicates bullish momentum for the market. MACD and Price ROC are both positive and continue with their buy signal. ADX at 26 indicates the uptrend showing strength. Directional Indicators continue in Buy mode as +DI is above –DI. OBV has gone above the previous top and thereby signaling a fresh Buy. MFI @72 suggests positive money flow in the market. Thus Oscillators are suggesting a bullish bias for the market.
The Options data suggest highest Call writing at the strike of 8000 and highest Put writing at the strike of 7700. This suggests a trading range for the market with support coming in at 7700 and resistance at 8000. Friday saw strong Put writing at 7900 strike which indicates immediate support at 7900.
Stock of the week:
PNB
The stock has been moving in a downward sloping channel since hitting the high of 1068. The stock gave a false break out and bounced sharply. It now has given breakout on the upside with good volumes. The stock can be bought with the stop loss of 966 for the target of 1014-1031-1060
Nifty opened the week at 7785, made a high of 7929, low of 7779 and closed the week at 7913. Thus the Nifty closed the week with a gain of 122 points. After a strong move on Monday, the market has consolidated for rest of the week. On the weekly charts, Nifty has made an Opening White body Marubuzo. Thus the weekly pattern indicates the continuation of bullishness in the near term.
In March this year the market had given a very strong bullish breakout for multiple patterns on multiple timeframes. One of the formations was a Bullish Rounding Bottom on the weekly charts which has a target of 8145. A Flag pattern will get completed once Nifty closes above 7922. The target for this pattern will at 8304.
Nifty has completed a Bullish Island Reversal and thereby generating a Buy signal. The signal will stand negated if Nifty closes below 7540. The market is constantly making higher top higher bottom formations and the short term trend is likely to reverse if the Nifty closes below 7540. A breach of this support is likely to test the Support zone between 7441-7394 which is due to a confluence of the 61.8% correction level with intermittent bottoms at 7441 & 7422. On a higher scale, a very strong Support zone is formed between 7112-7067. This is a result of confluence of 38.2% Retracement of the higher rally (7112), 61.8% Retracement of the immediate rally (7097) and the start of the intermediate Bullish Rising Gap (7067). The long term trend will continue to remain bullish as long as this Support zone is held.
This week, Nifty has managed to remain above the short term average of 20dma (7757) as well as the medium term average of 50dma (7667). Both the indices continue to remain well above the long term average of 200dma (6785). Thus the trend in the short term, medium term and long term continues to remain bullish.
RSI @62 indicates bullish momentum for the market. MACD and Price ROC are both positive and continue with their buy signal. ADX at 26 indicates the uptrend showing strength. Directional Indicators continue in Buy mode as +DI is above –DI. OBV has gone above the previous top and thereby signaling a fresh Buy. MFI @72 suggests positive money flow in the market. Thus Oscillators are suggesting a bullish bias for the market.
The Options data suggest highest Call writing at the strike of 8000 and highest Put writing at the strike of 7700. This suggests a trading range for the market with support coming in at 7700 and resistance at 8000. Friday saw strong Put writing at 7900 strike which indicates immediate support at 7900.
Stock of the week:
PNB
The stock has been moving in a downward sloping channel since hitting the high of 1068. The stock gave a false break out and bounced sharply. It now has given breakout on the upside with good volumes. The stock can be bought with the stop loss of 966 for the target of 1014-1031-1060
