Archives : NIFTY ABOVE 6000; COURTESY INFOSYS - 12/07/2013.

NIFTY ABOVE 6000; COURTESY INFOYSYS – 12/07/2013.

BULLISH REVERSAL PATTERN COMPLETED.

After taking support at just above the Bullish Breakaway Gap three times, the market is now ready to move higher.  Thus in the short term, this Bullish Breakaway Gap (between Sensex 19093-18925 and Nifty 5749-5699) will continue to act as a strong support area. The ongoing Correction of the fall from Sensex 20443 and Nifty 6229 got completed; when Sensex closed above 19688 and Nifty above 5976 and thereby resuming the prior uptrend. Also both the indices have completed a Bullish Cup and Handle pattern and the target as per that falls at Sensex 20729 and Nifty 6242.

 

 


NIFTY ABOVE 6000; COURTESY INFOYSYS – 12/07/2013.

BULLISH REVERSAL PATTERN COMPLETED.

After taking support at just above the Bullish Breakaway Gap three times, the market is now ready to move higher.  Thus in the short term, this Bullish Breakaway Gap (between Sensex 19093-18925 and Nifty 5749-5699) will continue to act as a strong support area. The ongoing Correction of the fall from Sensex 20443 and Nifty 6229 got completed; when Sensex closed above 19688 and Nifty above 5976 and thereby resuming the prior uptrend. Also both the indices have completed a Bullish Cup and Handle pattern and the target as per that falls at Sensex 20729 and Nifty 6242.

TECHNICALLY SPEAKING.

Sensex opened the week at 19418, made a high of 19991, low of 19185 and closed the week at 19958. Thus it registered a strong weekly gain of 463 points. At the same time the Nifty opened the week at 5833, made a high of 6019, low of 5775 and closed the week at 6009. Thus the Nifty went up by 142 points on a weekly basis.

Both the indices formed a big white body candle on the weekly charts suggesting that the ongoing bullishness is likely to continue. On Friday, both Sensex and Nifty opened with a big gap up and managed to form a small white body candle on Friday, with a big lower shadow. If we consider the candlestick pattern made on Wednesday and Thursday, Sensex has formed a Bullish Separating Lines which is a bullish continuation pattern. Thus the candlestick pattern suggests bullishness to continue in the near term.

Both the indices have left behind a Bullish Rising gap between Sensex 19093-18925 and Nifty 5749-5699. This gap acted as a support twice this week as the Sensex and Nifty bounced from just above this gap. This gap marks the beginning of a bull rally and hence it can be termed as a Bullish Breakaway gap. Also this gap completed a Bullish Island Reversal pattern on the daily charts.

Both the indices have managed to close above the 61.8% Retracement level (Sensex 19688 and Nifty 5976) of the fall from Sensex 20443 to 18467 and Nifty 6229 to 5566 which suggests that the correction is over and the prior uptrend has resumed.

Also this week, a Bullish Cup and Handle pattern got completed when Sensex closed above 19598 and Nifty above 5904. This is a Bullish Reversal pattern and the target as per this pattern falls at Sensex 20729 and Nifty 6242.

This week both the indices have managed to close above the medium term average of 50dma (Sensex – 19553 and Nifty – 5917) besides already being above the short term average of 20dma (Sensex – 19205 and Nifty – 5789) and also above the long term average of 200dma (Sensex – 19257 and Nifty – 5838). Thus the trend in the medium term timeframe has turned up, whereas the trend in the short term and long term timeframe continues to remain bullish.

Market has managed to bounce back number of times from above the Bullish Rising Gap between Sensex 18284-18062 and Nifty 5526-5447. This gap was tested many times in the last three months and has proved to be a strong support for the market. In fact this gap has consistently provided support to the market. This gap holds more significance because a breach of this gap will signal the end of the long term rally.

MACD and ROC both continue with their Buy signals; besides being in the positive zone. RSI (61) is moving higher suggesting increase in bullish momentum. Stochastic Oscillator continues in Buy mode as %K (89) is above %D. MFI (63) has increased and moved higher suggesting money flowing into the market. Prices have managed to touch the upper Bollinger Band but failed to close above that, thus falling short of giving a Buy signal. ADX has fallen further to 16 suggesting that the current trend has lost all of its strength. The Directional Indicators continue with their Buy signal as +DI remains above –DI. OBV continues in Buy mode besides making higher top higher bottom formation. Thus majority of the Oscillators are suggesting continuation of short term bullishness.

The Nifty O.I. PCR has further increased and is now a respectable 1.71. This suggests that the Put writers are now gaining in confidence over call writers and hence the higher value of the indicator. For the next month series, highest Open interest build up is seen at 5700 Put and 6100 Call. This suggests that the market expects a trading range with support coming in at 5700 levels and resistance around 6100 levels. In the current month series, Friday saw a lot of Put writing at the strike of 5900 and Call writing at 6200, which suggests immediate support to come in at around 5900 level and strong resistance around the level of 6200.

The Trendline Resistance for the Sensex is at 20428. The Trendline Support for the Sensex is at 19528.

The Trendline Resistance for the Nifty is at 6222. Trendline Support for the Nifty falls at 5863.

For the week ahead, Sensex will find Support at 19640-19383-19093 and will find Resistance at 20254-20538-20854.

For the week ahead, Nifty will find Support at 5904-5802-5699 and will find Resistance at 6111-6229-6338.

INDEX LEVELS:

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

5699

5802

5904

6009

6111

6229

6338

Sensex

19093

19383

19640

19958

20254

20538

20854

LAST WEEKS RECOMMENDATIONS:

All the major Recommendations did well to reach their targets with the exception of Godrej Industries. However the Star Performers of the week were CoLPaL and Thermax which went up by around 4% each!!! 

STOCK

Reco. Price

Tgt

Reached

Lot Size

Profit

Buy Godrej

318

327

319

1000

Rs. 1,000

CoLPaL

1387

1415

1438

250

Rs.12,750

JubFood

1130

1156

1158

250

Rs. 7,000

AuroPh

188

195

195

2000

Rs.14,000

Thermax

616

635

640

500

Rs.12,000

Total

Rs.46,750

THIS WEEKS RECOMMENDATIONS:

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy BhartiAir

305

301

313

321

Buy OFSS

2758

2715

2823

2890

Buy TechMah

1121

1098

1158

1197

Buy IGL

289

285

296

304

Buy RPower

76

74

79

83

WATCH OUT FOR:

Tech Mahindra

Disclaimer : The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness.

Copyright © 2000 - 2018 Jatin Sanghavi. All rights reserved.
No part of the material on this website may be reproduced or distributed in any forms or by any means, electronics or mechanical without the written permission of the author.
Sitemap