14.04.2019
AAKASHAYA PATRA WEEKLY MARKET OVERVIEW
Just when it seemed that Nifty will correct its stupendous rise of
the last few days, it did not. There was a hint of Correction finally happening
but it seems Market is in no mood to oblige. At the most, we can have Nifty
consolidating near the top.Once Consolidation is over, Nifty will be on its way
to achieve its higher target of 11822-12232. Any decline should be treated as
Buying Opportunity. One should have a strong inclination for the Mid-Caps and
Small-Caps which finally have started playing catch-up. It is time to indulge
in stock-picking; as Mid-Cap blast is not far away.
TECHNICALLY SPEAKING :-
Sensex opened the week at 38993,made a high of 39041, low of 38460
and closed the week at 38767. Thus it closed the week with a loss of 95 points.
At the same time the Nifty opened the week at 11704, made a high of 11710, low
of 11549 and closed the week at 11643. Thus the Nifty closed the week with a
loss of 22 points. On the daily charts, both the indices have formed a small White
Body Spinning Top. It is a neutral formation occurring in sideways
consolidation. On the weekly charts both Sensex and Nifty have
formed a small Black body candle with a lower shadow. The formation
is almost like a Hanging Man but it is not as the lower shadow is not twice the
length of the body. Thus both daily as well as weekly candle-stick study
suggest a sideways consolidation
bias. When the indices gave a Bullish breakout for the Trading Range
of four months, a Bullish Cup & Handle pattern got completed. The target
for the pattern falls at Sensex 41053 and Nifty 12232. Both Sensex and Nifty
are in sideways consolidation and once that is over, both the indices will be
headed for the above mentioned targets. Market has strong Support at the higher
bottom of Sensex 37667 and Nifty 11311 followed by Bullish Gap between Sensex
37230-37106 and Nifty 11227-11180. Thus this Bullish Gap will act as strong
Support zone.Also the Gap can be called as Measuring Gap. The target as per
that will be Sensex 39049 & Nifty 11822.
This week, both the indices tested the short term average of 20dma
before bouncing back. Again both the indices have closed bove all the Moving
Averages viz. the long term average of 200dma (Sensex - 36445 and Nifty -
10968), the medium term average of 50dma
(Sensex - 37240 and Nifty - 11178) and also the short term average of 20dma
(Sensex - 39518 and Nifty -10968). Thus the Trend in the long term, medium term
and short term Timeframe remains Upwards.MACD as well as Price ROC are positive
but MACD is in Sell mode whereas Price ROC is in mode. RSI (62) still suggests
strong Bullish momentum. Stochastic Oscillator %K (64) is below %D and hence in
Sell mode. ADX (35) suggests UpTrend still very strong. Directional Indicators
are in Buy mode as +DI is above -DI. MFI (74) suggests Positive Money Flow. OBV
continues to make higher top higher bottom formation in line with the Bullish
trend.Bollinger Band continues with its Buy signal. Thus majority of
Oscillators are suggesting a Bullish bias.
Options data for April series indicate highest Call Open Interest is
now at the strike of 12000 whereas the highest Put build-up is at the strike of
11000. Thus Options data suggests a trading range with resistance at 12000
& support at 11000.
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