Archives : SLUGGISHNESS ON DAILY & WEEKLY CHARTS - 03/06/2016.

SLUGGISHNESS ON DAILY & WEEKLY CHARTS - 03/06/2016.

NIFTY FAILS TO CLOSE ABOVE 8243.

After giving a strong breakout in the previous week, market was expected to show strong momentum. Instead the market became sluggish as it failed to overcome the critical level of 61.8% Retracement i.e. Sensex 27148 and Nifty 8243. Bullish momentum will be witnessed as soon as both the indices close above these levels. The failure to do so in the week gone by, has resulted in mid-caps losing momentum. One should not be surprised by short term down moves towards strong Support Gap of 7948 – 7941.


SLUGGISHNESS ON DAILY & WEEKLY CHARTS - 03/06/2016.

NIFTY FAILS TO CLOSE ABOVE 8243.

After giving a strong breakout in the previous week, market was expected to show strong momentum. Instead the market became sluggish as it failed to overcome the critical level of 61.8% Retracement i.e. Sensex 27148 and Nifty 8243. Bullish momentum will be witnessed as soon as both the indices close above these levels. The failure to do so in the week gone by, has resulted in mid-caps losing momentum. One should not be surprised by short term down moves towards strong Support Gap of 7948 – 7941.

TECHNICALLY SPEAKING.

Sensex opened the week at 26694, made a high of 27008, low of 26561 and closed the week at 26843. Thus it closed the week with a gain of 190 points. At the same time the Nifty opened the week at 8166, made a high of 8262, low of 8134 and closed the week at 8220. Thus the Nifty closed the week with a gain of 64 points.

On the daily charts, both Sensex and Nifty have made a small Black body Star formation. On the weekly, charts both the indices have formed a small White body Star. Thus both daily and weekly formations are neutral in nature and hence further direction can only be had from Monday’s candle formation.

Both the indices are now retracing the entire fall from Sensex 30024 to 22494 and Nifty 9119 to 6825. The relevant Retracement levels are placed at Sensex 25371-26259-27148 and Nifty 7702-7972-8243.

This week both the indices tested the critical 61.8% Retracement i.e. Sensex 27148 and Nifty 8243, but failed to give a close above these critical levels. If the indices manage to close above the 61.8% Retracement i.e. Sensex 27148 and Nifty 8243, then it will mark the end of Correction phase and will signal a move towards testing the life highs at Sensex 30024 and Nifty 9119.

MACD and Price ROC are both positive and continue with their Buy signals. RSI (71) suggests strong bullish momentum, but has just entered overbought territory. Even Stochastic Oscillator %K (94) is overbought but continues in Buy mode as it is above %D. ADX has improved to 24 which suggest that uptrend is now gaining strength. Directional Indicators continue in Buy mode as +DI remains above –DI. Buy signal continues in Bollinger Band since last week. MFI (58) suggests Positive Money Flow. OBV continues in Buy mode, making higher tops higher bottoms. Thus majority of Oscillators are suggesting bullishness in the near term.

This week, both the indices managed to remain above the short term average of 20dma (Sensex – 25970 and Nifty – 7953), medium term average of 50dma (Sensex – 25602 and Nifty – 7835) and even the long term average of 200dma (Sensex – 25571 and Nifty – 7776). Thus the trend in the short term, medium term and the long term timeframe continues to remain Bullish.

Options data for June series indicate highest Call Open Interest build-up has shifted to the strike of 8400 and highest Put build-up at 8000. Thus Option data suggests a trading range with resistance coming in at 8400 and support at 8000.

INDEX LEVELS:

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

7882

7992

8116

8220

8322

8408

8504

Sensex

25549

26080

26415

26843

27209

27564

27959

LAST WEEKS RECOMMENDATIONS:

STOCK

Reco. Price

Tgt

Reached

Lot Size

Profit

Buy BPCL

1012

1050

1034

600

Rs.13,200

Siemens

1202

1242

1236

400

Rs.13,600

ReLCaP

414

431

421

1500

Rs.10,500

Buy CESC

562

581

562

1000

Rs. -

JsWEnergy

71

75

74

6000

Rs.18,000

Total

Rs.55,300.

THIS WEEKS RECOMMENDATIONS:

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy BajajAuto

2639

2583

2724

2811

Buy KotakBnk

769

752

795

822

Buy PowerGrid

150

146

156

163

Buy DwarkeshSug

220

210

236

253

Buy PTC

68

66

72

77

WATCH OUT FOR:

PTC

NTPC

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