Archives : NIFTY BREAKOUT; MID-CAPS REBOUND - 27/07/2018.

NIFTY BREAKOUT; MID-CAPS REBOUND - 27/07/2018.

 

NIFTY TARGET 11907-12391.

 

Finally the much awaited breakout occurred and as a result we are at life-high levels for both Nifty and Sensex. Same is the case with Bank Nifty. As a result of these bullish breakouts, Mid-Cap index has rebounded from the lows and starting inching higher. Mid-Caps and Small-Caps were the pain points for the market and this rebound will provide much needed relief to market participants. Nifty has completed critical Bullish Patterns and is headed for short term target of 11336 & intermediate targets of 11907-12391.

 


NIFTY BREAKOUT; MID-CAPS REBOUND - 27/07/2018.

 

NIFTY TARGET 11907-12391.

 

Finally the much awaited breakout occurred and as a result we are at life-high levels for both Nifty and Sensex. Same is the case with Bank Nifty. As a result of these bullish breakouts, Mid-Cap index has rebounded from the lows and starting inching higher. Mid-Caps and Small-Caps were the pain points for the market and this rebound will provide much needed relief to market participants. Nifty has completed critical Bullish Patterns and is headed for short term target of 11336 & intermediate targets of 11907-12391.

 

TECHNICALLY SPEAKING.

 

Sensex opened the week at 36561, made a high of 37368, low of 36491 and closed the week at 37336. Thus it closed the week with a gain of 840 points. At the same time the Nifty opened the week at 11019, made a high of 11283, low of 11010 and closed the week at 11278. Thus the Nifty closed the week with a gain of 268 points.

 

On the daily charts, both Sensex and Nifty has formed a white body candle after a gap-up opening. On the weekly chart, both Sensex and Nifty have formed a big White Body Marubuzo. Thus daily as well as weekly charts are suggesting a Bullish bias.

 

In the week gone by, both Sensex and Nifty have completed a Rounding Bottom formation and the Target as per that pattern falls at Sensex 40403 and Nifty 12391. Two weeks back, when Sensex closed above 35993 and Nifty above 10929, both completed a Bullish Cup and Handle pattern which has a target of Sensex 39503 and Nifty 11907. The handle itself has a Symmetrical Triangle within it and which has a target of Sensex 37345 and Nifty 11336. The above targets will be achieved as long as Sensex remains above 34937 and Nifty above 10557.

 

On Friday, both the indices went up leaving behind an Upward Bullish Gap between Sensex 37131-37061 & Nifty 11210-11185 which will act as Support in the near term.

 

This week, both the indices were above the short term average of 20dma (Sensex – 36291 and Nifty – 10956) as well as medium term average of 50dma (Sensex – 35657 and Nifty – 10800). Also both the indices continue to remain above the long term average of 200dma (Sensex – 34366 and Nifty – 10537). Thus the trend in short term, medium term as well as long term time-frame remains Bullish.

 

MACD and Price ROC are both positive and continue in Buy mode. RSI (73) suggests strong bullish momentum. Stochastic Oscillator %K (95) has just gone below %D and hence in Sell mode. ADX has increased to 30, suggests a very strong Uptrend. Directional Indicators continue in Buy mode as +DI is above –DI. MFI (80) suggests Positive Money Flow. OBV is making higher top higher bottom formation. Thus Oscillators suggest a bullish bias. Interestingly Momentum Oscillators are getting into overbought terrain, which suggests a minor consolidation can creep in any time.

 

Options data for August series indicate highest Call Open Interest is at the strike of 11500 whereas the highest Put build-up is at the strike of 11000. Thus Options data suggests a trading range with resistance at 11500 & support at 11000.


INDEX LEVELS:


 

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

10999

11093

11185

11278

11362

11446

11539

Sensex

36019

36443

36858

37336

37684

38051

38543

 

THIS WEEKS RECOMMENDATIONS:


STOCK

CMP

SL

Tgt-1

Tgt-2

Buy MRF

80860

79250

83350

85913

Bajaj Finance

2713

2662

2791

2873

Century Tex

941

923

969

997

Buy KSCL

607

593

628

651

Buy InfiBeam

183

179

189

196


WATCH OUT FOR:

 

Nifty Cup&Handle RB 2018
 
 

 

 

 

 

 

 


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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