NIFTY WEEKLY REPORT FOR 26 SEP TO 30 SEP 2016

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WEEKLY RESISTANCE FOR NIFTY: 8900, 8940, 8968, 8996

PIVOT POINT: 8862

WEEKLY SUPPORT FOR NIFTY :  8834,8806,8767,8661

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8870, 8889, 8909,8937

PIVOT POINT: 8850

DAILY SUPPORT FOR NIFTY :  8812, 8792, 8763, 8734

DAILY CHART FOR NIFTY

Sensex opened the week at 28626, made a high of 28871, low of 28462 and closed the week at 28668. Thus it closed the week with a gain of 69 points. At the same time the Nifty opened the week at 8788, made a high of 8893, low of 8757 and closed the week at 8831. Thus the Nifty closed the week with a gain of 52 points. "Nifty edged marginally lower on Friday and lost nearly half a percent, tracking decline in select index majors. The move was on expected line in Nifty and we believe it’ll continue ahead also. However, the range would be broader due to upcoming F&O expiry. 

FED announcement to keep interest rates unchanged

The first Principle of the Classical Theory ‘Price Discounts Everything’ was at play in the week gone by. The FED announcement to keep interest rates unchanged was already discounted in the price. The formation of Bearish Doji confirmed the above Principle. No doubt the narrow trading range was broken after a big gap up opening but the bullish momentum could not sustain as it resulted in profit booking. Only a close above Nifty 8893 will pave the way for further upward movement.

TECHNICALLY SPEAKING.

Thursday saw a big gap up opening in the nifty which helped in breaking the narrow trading range on the upside. But the formation of a Doji meant that the breakout was not convincing and hence the nifty again settled in the range. Only a close above the bearish Doji Nifty 8893 will pave the way towards testing of life time highs.

                             On the downside, immediate Support exists in the form of short term Trendline which falls at Nifty – 8796. It is a critical Trendline from which the indices have successfully taken support almost three times. nifty continue to trade within the boundaries created by the Gaps on both sides. On the upper side, Bearish Gap between Nifty 8848-8858 was filled this week but the formation was a Bearish Doji. Hence a close above that will be required for moving further up. On the lower side, Bullish Gap between Nifty 8642-8622 continues to act as strong support. If this downside Bullish Gap is breached, then the indices are likely to test the critical Support in the form of another Bullish Gap between Nifty 8479-8475.MACD and Price ROC are both positive and continue in Buy mode. RSI (57) suggests bullish momentum. This week, both the indices remained comfortably above the short term average of 20dma Nifty – 8770, medium term average of 50dma Nifty – 8675 and even the long term average of 200dma Nifty – 7970. Thus the trend in the short term, medium term and even the long term timeframe continues to remain Bullish.

CANDLESTICK VIEW:

On the daily charts, Nifty formed a Bearish Doji on Thursday after a big gap up opening. Friday saw a black body candle formation but that cannot be taken as confirmation because of the smaller candle body. On the weekly charts, both the nifty have formed a small white body Spinning Top. This is the third neutral formation in three successive weeks. Thus daily as well as weekly charts are indecisive.