NIFTY WEEKLY REPORT FOR 29 AUG TO 02 SEP 2016

WEEKLY RESISTANCE FOR NIFTY: 8644, 8664, 8698, 8732

PIVOT POINT: 8624

WEEKLY SUPPORT FOR NIFTY :  8590,8556,8535,8516

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8646, 8662, 8679,8695

PIVOT POINT: 8629

DAILY SUPPORT FOR NIFTY :  8613, 8596, 8580, 8563

DAILY CHART FOR NIFTY

Sensex opened the week at 28155, made a high of 28160, low of 27708 and closed the week at 27782. In the week ended Friday, 19 August 2016, the Sensex fell 295 points or 27782. At the same time the Nifty opened the week at 8645, made a high of 8743, low of 8596 and closed the week at 8625. The Nifty fell 55 points or to settle at 8,625.

TECHNICALLY SPEAKING

Technically, Indian Stock Market is in negative trend. Now, traders should watch for Nifty resistance of 8710 levels. Once Nifty breaches those levels, we would see new highs in days to come. Overall market is negative .Market is still in consolidation phase and further correction can’t be ruled out at this point of time. BankNifty would see immediate resistance at 19500 levels by closing and breaching these levels by closing would force market to see sharp breakout. BankNifty would surely see some correction below 19211 and nifty 8550. Since, MACD and Price ROC both are positive and continue with their Buy signals. RSI (50) .This week, both the indices continued to remain well above the short term average of 20dma Nifty – 8620, medium term average of 50dma Nifty – 8470 and even the long term average of 200dma Nifty – 8120. Thus the trend in the short term, medium term and the long term timeframe continues to remain Bearish.

BANKNifty Enters Negative Zone, Short Only If BankNifty Breaches 19211 Levels

Now Technically, Nifty has entered into negative zone but BankNifty is still holding positive trend. Market is very tricky as of now and Traders should wait for confirmation as yesterday fall can be an effect of F&O Expiry as well. If  BankNifty breaches 19211 then it would also enter into negative zone and traders can initiate fresh short positions in Nifty or BankNifty. BankNifty is at premium and overly performed, so if market falls then BankNifty would fell down at much higher rate. Now Nifty would again come in positive zone only once it closes above 8702 levels which is far as of now.. But traders should initiate any short positions only after confirmation of the trend that would be confirmed if BankNifty closes below 19211 levels. Overall trend reversal is on the charts and we may see sharp negative movement in days to come.

RANGE BREAKOUT IN COMING WEEK.

Both Sensex and Nifty continued to trade in a very tight range but the broader market outperformed both these indices handsomely. In fact, the Mid-Cap index broke out of the trading range and is progressing upwards. The Nifty on the other hand has been in a small trading range of 250 points (8728-8550) for more than six weeks now and as per the Principle of Volatility, one can expect a breakout (bias remains positive) in this trading range in the near future, possibly as early as next week.