*AAKASHAYA PATRA WEEKLY MARKET OVERVIEW:* 05.04.2020

As expected the Pull-Back fizzled out without adding much to its upward tally. The truncated week saw the Market give up all the positiveness of the previous week and ending at the lows of the week. Nifty is precariously hanging above 8000 levels,which does not instil any confidence amongst Market participants. A possible retest of the bottom at Nifty 7511 looks on the cards. A break can take the Nifty down to 6825-6144. Two minor positives for the week were the Volatility Index India VIX cooling down by almost 21% and the drop in stock prices accompanied by reduced volumes. These can aid in moving the Market higher,provided if the extended weekend sees some positive news flow coming in from the Corona front.

Technically Speaking :-

Sensex opened the week at 29226, made a high of 29770, low of 27500 and closed the week at 27590. Thus it closed the week with a loss of 2225 points. At the same time the Nifty opened the week at 8385, made a high of 8678, low of 8055 and closed the week at 8083. Thus the Nifty closed the week with a loss of 577 points.

On the daily charts, both the indices have formed Opening Black body Marubuzo for last two consecutive trading sessions. On the weekly charts, both the Sensex and Nifty have formed a Bearish Harami but that cannot be given significance as it has formed in a Downtrend. Thus candlestick pattern study suggests a bearish bias.

The Market is under a Pull-Back which started last week after falling for more than 4900 points on Nifty with Sensex making an intermediate bottom at 25638 and Nifty 7511. The Pull-Back levels are placed at Sensex 31993-33956-35918 and Nifty 9390-9970-10551. The Pull-Back as of now seems to have fizzled out as the Nifty has dropped to almost 8000 levels. Thus the down trend continues and it is a matter of time when the indices retreat to the test the intermediate bottoms at Sensex 25638 and Nifty 7511.

In case the current Pull-Back gathers steam then, both the indices will face strong Resistance Zone at the Bearish Gap between Sensex 34769-35109 and Nifty 10159-10294. On the downside,if Nifty closes the March month below 8432, then it can go all the way down to 6110.This week, both the indices have closed well below the Short term average of 20dma (Sensex -30901 and Nifty - 9030), Medium term average of 50dma (Sensex - 36692 and Nifty 10754) and
even the Long term average of 200dma (Sensex - 38615 and Nifty - 11408). Thus the Trend in the Short term, Medium term as well as Long term Timeframe continues to remain Bearish.

MACD is in Buy mode whereas Price ROC is negative and continues in Sell mode. RSI (33) suggests Bearish Momentum. Stochastic Oscillator %K (32) is above %D and hence in Buy mode.ADX (57) suggests Downtrend is over matured and may now undergo consolidation. Directional Indicators are in Sell mode as +DI is below -DI. OBV continues in Sell mode, making lower top lower bottom formation. Bollinger Band continues in Sell mode. MFI (33) suggests Negative Money Flow. Thus Oscillators are suggesting mixed bias.

Options data for April series indicate highest Call Open Interest at 9000 and highest Put buildup is at the strike of 8000. Thus Options data suggests a trading range with Resistance at 9000 and Support at 8000.

Comments

Popular posts from this blog

AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: 18.10.2020