Archives : NIFTY TARGET 11907-12391 - 03/08/2018.

NIFTY TARGET 11907-12391 - 03/08/2018.

 

UPWARD MARCH CONTINUES.

 

Market is in a strong Bullish Momentum grip as indices continue to march higher. Nifty had left behind a Bullish Gap between 11210-11185. On Thursday, the fall in Nifty saw the above Bullish Gap being tested before bouncing back and is now headed much higher towards intermediate targets of 11907-12391. More interestingly, the Mid-Cap 50 and Mid-Cap 100 indices showed a minor convergence as they moved higher on Thursday whereas Nifty was down by more than a percent. Probably this is the first signal that the divergence between the Frontline indices and Mid-Caps is likely to reduce and we will see strong momentum returning to the Mid-Caps & Small-Caps.

 


NIFTY TARGET 11907-12391 - 03/08/2018.

 

UPWARD MARCH CONTINUES.

 

Market is in a strong Bullish Momentum grip as indices continue to march higher. Nifty had left behind a Bullish Gap between 11210-11185. On Thursday, the fall in Nifty saw the above Bullish Gap being tested before bouncing back and is now headed much higher towards intermediate targets of 11907-12391. More interestingly, the Mid-Cap 50 and Mid-Cap 100 indices showed a minor convergence as they moved higher on Thursday whereas Nifty was down by more than a percent. Probably this is the first signal that the divergence between the Frontline indices and Mid-Caps is likely to reduce and we will see strong momentum returning to the Mid-Caps & Small-Caps.

 

TECHNICALLY SPEAKING.

 

Sensex opened the week at 37491, made a high of 37711, low of 37128 and closed the week at 37556. Thus it closed the week with a gain of 220 points. At the same time the Nifty opened the week at 11296, made a high of 11390, low of 11234 and closed the week at 11360. Thus the Nifty closed the week with a gain of 82 points.

 

On the daily charts, both Sensex and Nifty has formed a big Opening White Body Marubuzo after an Upward Gap. The formation fell short of being a Kicking pattern, only if the gap up opening had been above the previous day’s open. On the weekly chart, both the indices have formed a small white body candle just like a Star. Thus more than weekly, daily formation suggests more bullishness.

 

Two weeks back, both Sensex and Nifty have completed a Rounding Bottom formation and the Target as per that pattern falls at Sensex 40403 and Nifty 12391. Also both the indices had 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, whose target has been achieved. The above targets will be achieved as long as Sensex remains above 34937 and Nifty above 10557.

 

Last week, both the indices left behind an Upward Bullish Gap between Sensex 37131-37061 & Nifty 11210-11185 which will act as Support in the near term. This Gap is also a Measuring Gap and as per Gap theory the target falls at Sensex 37934 and Nifty 11469.

 

This week, both the indices were above the short term average of 20dma (Sensex – 36783 and Nifty – 11105) as well as medium term average of 50dma (Sensex – 35940 and Nifty – 10880). Also both the indices continue to remain above the long term average of 200dma (Sensex – 34494 and Nifty – 10567). 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 (69) suggests strong bullish momentum. Stochastic Oscillator %K (84) is below %D and hence in Sell mode. ADX has increased to 37, suggests a very strong Uptrend. Directional Indicators continue in Buy mode as +DI is above –DI. MFI (87) suggests Positive Money Flow. OBV is making higher top higher bottom formation. Thus Oscillators suggest a bullish bias. Interestingly certain 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

11117

11234

11360

11469

11578

11682

Sensex

36362

36747

37134

37556

37934

38543

38889


THIS WEEKS RECOMMENDATIONS:


STOCK

CMP

SL

Tgt-1

Tgt-2

Buy Page Ind

29973

29423

30862

31778

HoneyWell Ind

20754

20250

21589

22478

Buy NiiTTech

1293

1265

1335

1379

Buy LuXInd

1956

1917

2017

2083

Buy BBTC

1614

1578

1669

1725


WATCH OUT FOR:

 

NiiTTech
 

 

 

 

 


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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