NIFTY WEEKLY ANALYSIS FOR 24 OCT TO 28 OCT 2016

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WEEKLY RESISTANCE FOR NIFTY: 8716, 8786, 8827, 8867

PIVOT POINT: 8646

WEEKLY SUPPORT FOR NIFTY :  8606,8565,8495,8425

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8707, 8725, 8745,8772

PIVOT POINT: 8690

DAILY SUPPORT FOR NIFTY :  8670, 8652, 8635, 8600

DAILY CHART FOR NIFTY

Sensex opened the week at 27673, made a high of 28206, low of 27508 and closed the week at 28077. Thus it closed the week with gain of 248 points. At the same time the Nifty opened the week at 8608, made a high of 8728, low of 8507 and closed the week at 8700. The Indian equity market ended in the red on Friday tracking declines in Asian stocks as a stronger dollar weighed on crude oil prices, hurting investor risk appetite. In first half, bias was slightly on the negative side but swift recovery in last one hour of trade completely trimmed the intra-day losses.

8558 - CRITICAL LEVEL.

Even though there is a bullish candlestick pattern formed on the daily charts on Friday, it will not lead to trend reversal in the short or medium term timeframe. It can be termed as a price reversal in the daily timeframe and once that minor pullback in price is done, one can expect a break of the critical Trend line support of Nifty 8558. Interestingly the equivalent level for the Sensex (27728) has been breached. Thus as a result one can expect the indices to move lower to test the long term average of 200dma.

TECHNICALLY SPEAKING.

                                      Technically, Nifty is now placed near the mean of the channel pattern & the positive crossover in the RSI indicates a move towards the upper end of the channel placed near 8,750. Only a sustained move above 8,750 could extend the up move towards 8,900; hence long positions shall be maintained with a trail stop strategy below 8,600.A strong break (close)below 8600 will increase the downside pressure and drag it to 8500,8500. Traders can go short on a break below 8600 with a stop-loss at 8750 for the target of 8500.

Nifty is laying near its major support level of 8500. 8500 is a make or break level on closing basis. If Nifty closes below those levels then a breakdown would be seen in the market and we can even see levels of 8200-8000-7700 in days to come. But traders can take a chance here. Traders can go long near 8550 levels for Nifty with strict stop loss of 8500 on closing basis. MACD and Price ROC are both negative and continue in sell mode. RSI (55) suggests bearish momentum. This week, both the indices remained comfortably above the short term average of 20dma Nifty – 8715, medium term average of 50dma Nifty – 8660 and even the long term average of 200dma Nifty – 8350. Thus the trend in the short term, medium term and even the long term timeframe continues to remain Bearish.

UPCOMING RESULTS:

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