Archives : NIFTY TARGET 10462-10536 - 17/03/2017.

NIFTY TARGET : 10462-10536 - 17/03/2017.

 

ONCE AGAIN ITS MODI.

 

After undergoing a consolidation for 7 years from 2007 to 2014, market needed the Modi Touch to break the resistances and head higher. In the present scenario, the market was under consolidation for around 2 years from 2015 to 2017 and once again, it required the Modi Push to break free. As a result, the indices have given a bullish breakout and are now headed towards medium term target of Sensex 34677-34715 and Nifty 10462-10536.


 


NIFTY TARGET : 10462-10536 - 17/03/2017.

 

ONCE AGAIN ITS MODI.

 

After undergoing a consolidation for 7 years from 2007 to 2014, market needed the Modi Touch to break the resistances and head higher. In the present scenario, the market was under consolidation for around 2 years from 2015 to 2017 and once again, it required the Modi Push to break free. As a result, the indices have given a bullish breakout and are now headed towards medium term target of Sensex 34677-34715 and Nifty 10462-10536.

 

TECHNICALLY SPEAKING.

 

Sensex opened the week at 29437, made a high of 29824, low of 29356 and closed the week at 29648. Thus it closed the week with a gain of 702 points. At the same time the Nifty opened the week at 9091, made a high of 9218, low of 9060 and closed the week at 9160. Thus the Nifty closed the week with a gain of 226 points.

 

On the daily charts, both the indices have formed a small black body candle, but it is not a bearish formation. On the weekly charts, both Sensex and Nifty have formed a real White body candle after a big upward Gap. Thus both daily as well as weekly candlestick formations are suggesting a bullish bias in the near term.

 

As expected the Modi juggernaut continues to roll and as a result the market opened the week with a big gap up and thereby giving a crucial breakout by closing above the critical level of Sensex 29077 and Nifty 8968.  Nifty has already made new life-time highs whereas Sensex is within sniffing distance of life-time highs.

 

The big Gap up opening on Tuesday has sustained throughout the week and as a result the daily gap has now translated into a more powerful weekly gap i.e. between Sensex 29356-29098 and Nifty 9060-8977. This gap will not only act as strong support in the days to come but will also act as a Measuring Gap. The target as per Gap theory falls at Sensex 32737 and Nifty 10144.

 

On the daily charts, both Sensex and Nifty have formed a Pennant formation. The target as per the pattern falls at Sensex 30399 and Nifty 9252.

 

Since the indices have managed a close above Sensex 29077 and Nifty 8968, both the indices have completed a Saucer formation on the daily charts. The target as per this pattern falls at Sensex 31153-32437 and Nifty 9630-10043. On the weekly formation, both the indices have completed a Cup and Handle formation and the targets are Sensex 34677-37554 and Nifty 10536-11413.

 

If one considers the Cup and Handle formation of 7 years from 2007 to 2014, the target for that pattern falls at Sensex 34715 and Nifty 10462. The Golden Ratio target of the current pattern weekly pattern of 2 years is at Sensex 34677 and Nifty 10536. Thus in the medium term one can expect a test of the above targets i.e. Sensex 34677-34715 and Nifty 10462-10536.

 

MACD is positive and given a fresh Buy, whereas Price ROC continues to remain positive and in Buy mode. RSI (77) and Stochastic Oscillator %K (89) are both in overbought zone. ADX is at 44 which suggest that the Uptrend is very strong. Directional Indicators continue in Buy mode as +DI remains above –DI. MFI (50) suggests Positive Money Flow. OBV continues in Buy mode and continues to make higher top, higher bottom formation. Bollinger Band continues in Buy mode. Thus even though some Momentum Oscillators are in overbought zone, one can expect bullishness in the near term.

 

This week, both the indices continued to remain above the short term average of 20dma (Sensex – 28953 and Nifty – 8947), medium term average of 50dma (Sensex – 28149 and Nifty – 8702) and even the long term average of 200dma (Sensex – 27578 and Nifty – 8501). Thus the trend in the short term, medium term and even the long term timeframe continues to remain upwards.

 

Options data for March series indicate highest Call Open Interest build-up at the strike of 9200 and highest Put build-up has shifted higher at 8800. Thus Options data suggests a trading range with resistance coming in at 9200 and support at 8800.

 

INDEX LEVELS:

 

 

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

8860

8968

9060

9160

9252

9362

9444

Sensex

28410

28716

29145

29648

30024

30399

30772

 

THIS WEEKS RECOMMENDATIONS:

 

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy EicherM

24691

24069

25624

26574

Buy JustDiaL

604

591

624

645

Buy Siemens

1260

1232

1302

1345

Buy Havells

442

432

457

473

Buy EngineersInd

154

151

159

165

 

WATCH OUT FOR:

 

 

Nifty Tgt 10462

 

 

 

 

 

 

 

 

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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