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30.06.2019

AAKASHAYA PATRA WEEKLY MARKET OVERVIEW: 

Nothing new happened this week; more the things tried to change, more they remained the same. Same Trading Range coupled
with same high intraday fluctuations and Volatility. Market consistently before staging a bounce back right upto 20dma which acted as a strong resistance. Thus a smaller trading range defined by the 50dma (Support) and 20dma (Resistance) has the Nifty to test the weekly Bullish Gap Support between 11591-11426

Technically Speaking :-

Sensex opened the week at 39160, made a high of 39817,low of 38946 and closed the week at 39394. Thus it closed the week with a gain of 200 points.At the same time the Nifty opened the week at 11725, made a high of 11911, low of 11651 and closed the week at 11788. Thus the Nifty closed the week with a gain of 64 points.On the daily charts, both Sensex and Nifty have formed a real lack
body candle which when combined with previous two day's candle,nearly forms an Evening Star. On the weekly charts, both the indices have again formed a small white body Spinning Top which completes Bullish Harami pattern. Thus weekly Candlestick pattern study suggests a Bullish bias.

This week both the indices have moved in a Short Term Trading Range defined by the 50dma (Support) and 20dma (Resistance). This Trading Range lies within larger previously defined Trading Range between Sensex 40312-38651 & Nifty 12103-11614. In case of a break on the downside, the indices will move towards testing of the critical Weekly Bullish Gap. A bullish breakout will see  Sensex reaching Cup & Handle target of 41053 and Nifty 12232.Both the indices have left behind a Bullish Breakaway Gap not only
on the daily time-frame but also on weekly time-frame. This Bullish Gap between Sensex 38570-38001 and Nifty 11591-11426 will now act as strong Support Zone.

Both the indices had completed a Bullish Cup & Handle pattern in March 2019 and now they are heading towards their target of Sensex 41053 and Nifty 12232. Also a Rounding Bottom got completed,which has a target of Sensex 44687 & Nifty 13516.
This week, both the indices tested both the short term average of 20dma (Sensex - 39547 and Nifty - 11843) as well as medium term average of 50dma (Sensex – 39005 and Nifty - 11704), but could manage a close only above the 50dma and not the 20dma. Both the indices continue to remain above the long term average of 200dma (Sensex -36942 and Nifty - 11098). Thus the Trend in the medium term and long term Timeframe continues to be Bullish,whereas the Trend in the short term Timeframe has turned  Bearish.

MACD and Price ROC are both in Sell mode. RSI (51) suggests Bullish momentum. Stochastic Oscillator %K (53) is above %D and hence in Buy mode. ADX (23) suggests Uptrend losing strength. Directional Indicators are still in Buy mode as +DI is above -DI. MFI (48) suggests Negative Money Flow. Thus Oscillators are suggesting a mixed bias.

Options data for July series indicate highest Call Open Interest is at 12000 and the highest Put buildup is still at the strike of 11500. Thus Options data suggests a trading range with resistance at 12000 and strong support at 11500.

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