Archives : BULLISH START TO DECEMBER SERIES - 29/11/2013.

BULLISH START TO DECEMBER SERIES – 29/11/2013.

Please note that the next article will be on 13th Dec 2013. No new updates on 6th Dec 2013. 

NIFTY IMMEDIATE SUPPORT @ 5972.

After two days of Doji formation, market blasted its way higher on Friday, by making a big Opening White body Marubuzo. The new series has thus started on a promising note. As and when the Nifty crosses intermittent high of 6212, it will have not only overcome the 61.8% Retracement level (which is at 6201) but will also pave the way towards the all time high levels of 6357. There is a strong probability of the Nifty testing all time high levels as long as the short term support of Nifty 5972 holds.

 

 


BULLISH START TO DECEMBER SERIES – 29/11/2013.

Please note that the next article will be on 13th Dec 2013. No new updates on 6th Dec 2013. 

NIFTY IMMEDIATE SUPPORT @ 5972.

After two days of Doji formation, market blasted its way higher on Friday, by making a big Opening White body Marubuzo. The new series has thus started on a promising note. As and when the Nifty crosses intermittent high of 6212, it will have not only overcome the 61.8% Retracement level (which is at 6201) but will also pave the way towards the all time high levels of 6357. There is a strong probability of the Nifty testing all time high levels as long as the short term support of Nifty 5972 holds.

TECHNICALLY SPEAKING.

Sensex opened the week at 20326, made a high of 20819, low of 20326 and closed the week at 20791. Thus it registered a weekly gain of 574 points. At the same time the Nifty opened the week at 6035, made a high of 6182, low of 6030 and closed the week at 6176. Thus the Nifty closed the week with a gain of 181 points.

On the daily charts, both Sensex and Nifty formed two doji formations on Wednesday and Thursday, but on Friday both the indices formed a big Opening White body Marubuzo underlining the strength of the bulls. On the weekly charts, both the indices once again formed an Opening White body Marubuzo. The two candles before this week formation combine to form a Tweezer bottom. Thus both daily as well as weekly charts suggest bullishness in the near term.

Market is consolidating in a narrow range of Sensex 20137 - 20934 and Nifty 5972 - 6212. At the lower range both the indices have formed a Tweezer bottom which is providing support to the market whereas on the higher side there is the 61.8% Retracement of the recent fall from 21321 to 20137 for the Sensex and 6342 to 5972 for the Nifty. Hence a strong directional movement can be expected on breakout of this short term range.

An upward breakout of this trading range will propel the market towards the all time high levels; whereas a bearish breakout will resume the prior correction of the entire recent rise from Sensex 17448 to 21321 and Nifty from 5118 to 6342. Relevant Correction levels are Sensex 19842-19385-18928 and Nifty 5875-5730-5586.

Market has a strong support zone between Sensex 19444-19264 and Nifty 5738-5688. This is a confluence zone formed by the presence of Bullish Rising Gap between Sensex 19444-19293 and Nifty 5738-5688, intermediate low of Sensex 19264 and Nifty 5700 and the 50% Retracement level which is at Sensex 19385 and Nifty 5730. Thus this is a strong Support Zone and a breach of this support zone will end the current uptrend.

This week, both Sensex and Nifty conquered and closed above the short term average of 20dma (Sensex – 20638 and Nifty – 6128) and the medium term average of 50dma (Sensex – 20453 and Nifty – 6069). Indices continued to remain above the long term average of 200dma (Sensex – 19575 and Nifty – 5867). Thus the trend in the short term and medium term timeframe has turned bullish whereas the trend in the long term timeframe continues to remain positive.

MACD, despite being positive, continues with its Sell mode. ROC has turned positive this week and is in Buy mode. RSI (55) too suggests bullish momentum. MFI (43) has improved but is still below the equilibrium line, suggesting money flowing out. Stochastic Oscillator continues in Buy mode as %K (51) is above %D. ADX has fallen to 14, suggesting that the market is in consolidation mode. The Directional Indicators have signaled a Buy, as +DI has gone above -DI. OBV continues in Sell mode. Oscillators are mixed and hence don’t suggest a clear bias in the near term.

The Nifty O.I. PCR is at a reasonable 1.16. For the December month series, highest Open interest build up is at 6000 Put and 6500 Call. This suggests that the market expects a trading range with support coming in at 6000 levels and resistance around 6500 levels. Also Friday saw large amount of Put writing at 6100 levels. This suggests that the market will find immediate support at around 6100 levels.

The Trendline Resistance for the Sensex is at 21000. The Trendline Support for the Sensex is at 20299.

The Trendline Resistance for the Nifty is at 6318. The Trendline Support for the Nifty is at 6021.

For the week ahead, Sensex will find Support at 20493-20137-19826 and will find Resistance at 21039-21321-21650.

For the week ahead, Nifty will find Support at 6079-5972-5877 and will find Resistance at 6252-6342-6443.

INDEX LEVELS:

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

5877

5972

6079

6176

6252

6342

6443

Sensex

19826

20137

20493

20791

21039

21321

21650

LAST WEEKS RECOMMENDATIONS:

Except for NMDC, none of the recommendations reached their target.

THIS WEEKS RECOMMENDATIONS:

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy ABNuvo

1248

1228

1279

1311

Buy BoB

644

631

665

688

Buy YesBnk

368

361

380

393

Buy JindStL

258

253

266

275

Buy Pidilite

300

294

311

323

WATCH OUT FOR:

Pidilite

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.

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