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25.08.2019


AAKASHAYA PATRA WEEKLY MARKET OVERVIEW:

Despite being a selling week by FII and FPI, it was a very volatile week but by Saturday Finance minister stumilus package will pull nifty from the current level. Nifty took support at the Confluence Support Zone defined by the combination of Weekly Trendline along with 100 Weeks Moving Average. Hence the 'Hope' Rally which started a week before continued this week but lacked conviction and strength. Only if Nifty is able to close above 10873(take support @ 10640), will it be able to gather some strength and move up; expecting strong Resistances at 11083-11508. Till then all rallies are likely to be weak and short lived as Market will treat those rallies as Shorting opportunities.

Technically Speaking :-

Nifty opened the week at 11019, made a high of 11045, low of 10626 and closed the week at 10826. Thus the Nifty closed the week with a loss of 393 points.

On the daily charts, Nifty have formed a small white body hammer patern. On the weekly charts, the indices have formed a small Black body candle with a long lower shadow but cannot be called a Hammer. The lower shadow indicates buying at lower levels. Thus Candlestick study suggests a Bullish bias in the near term. On all the three working days of past week, Nifty took Support at the Confluence Zone (10626-10870) of strong Weekly Trendline Support (10828) This Confluence Support Zone has held for the second week running and has resulted in a minor Relief Rally Equivalent Support Zone levels

Current Rally will gather steam once Nifty closes above the 200dma i.e. 11178. Above this Nifty will run into a strong Weekly Bearish Gap Resistances at 11508.till then any pull-back will be treated as Selling opportunity by the Market.


MACD is negative but has given a fresh Buy signal. Price ROC is negative and in Sell mode.RSI (54) suggests Bearish momentum. ADX (66) suggests buying. Directional Indicators are in Sell mode as +DI is below(20) -DI. MFI (22) suggests Negative Money Flow. OBV is making lower top lower bottom formation. Bollinger Band continues with its Sell signal. Thus Oscillators are suggesting a bearish bias.

Options data for August series indicate highest Call Open Interest at 11000 and the highest Put build-up at the strike of 10500. Thus Options data suggests a trading range with resistance at 11000 and support at 10500 this week.

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