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*AAKASHAYA PATRA WEEKLY MARKET OVERVIEW:* 24.05.2020
The Market was neither enthused by record Fiscal package announcement nor a surprise 40bps Repo Rate Cut by the RBI. Nifty continues to remain in a Trading Range between 8800 on the lower side and 9300 on the higher side. A break of the higher boundary will lead the Nifty to test the two Bearish Gaps as well as two Bearish Island Reversals. Only a close above 9584 will signal a move towards testing the previous intermittent high of 9889. Whereas a close below 8800, will lead the Nifty down to test the Support levels at 8700-8419.


Technically Speaking :-

Sensex opened the week at 31248, made a high of 31248, low of 29968 and closed the week at 30672. Thus it closed the week with a loss of 425 points. At the same time the Nifty opened the week at 9158, made a high of 9178, low of 8806 and closed the week at 9039. Thus the Nifty closed the week with a loss of 97 points.

On the daily charts, both the indices have formed a small Black Body Spinning Top for second day running which is a neutral formation. On the weekly timeframe, both the indices have formed a small Black body candle with a long lower shadow and no upper shadow. It fails to qualify as a
Hammer as the lower shadow is not long enough to meet the criteria. Thus candlestick study suggests a minor bullish bias.

Both the indices have formed a Bearish Gap between Sensex 32748-33354 and Nifty 9533-9731, which will act as strong Resistance. Besides, the Gap completed a Bearish Island Reversal which indicated the end of Pull-Back. The Bearish Island can get negated if we have Sensex closing above 33887 and Nifty 9889.

Last week, both the indices formed second Bearish Island which was not significant as it was in sideways movement. But the second Bearish Gap between Sensex 31630-31901 and Nifty 9281-9351 will definitely act as Resistance in the immediate timeframe.

As the indices continue to drift lower, Retracement Support is seen at Sensex 30736-29763-28789 and Nifty 8980-8700-8419. A break of Nifty 8419 will be cause of concern as it can open the passage for a retest of the Bottom at 7511. Both the indices have managed to close below the Short term average of 20dma (Sensex -31468 and Nifty - 9223) as well as Medium term average of 50dma (Sensex - 30976 and Nifty 9067). Both the indices continue to remain below the Long term average of 200dma (Sensex -37417 and Nifty - 11023). Thus the Trend in the Short term as well as Medium term Timeframe has turned Negative, whereas the Trend in the Long term Timeframe continues to remain Bearish.

MACD as well as Price ROC continues in Sell mode. RSI (46) suggests a Bearish bias. Stochastic Oscillator %K (30) is above %D and hence in Buy mode. ADX (13) suggests sideways consolidation with no clear trend. MFI (37) suggests Negative Money Flow. A Sell signal has been generated in Bollinger Band. Thus Oscillators are suggesting a Bearish bias.

Options data for May series indicate highest Call Open Interest at the strike of 10000 followed by 9500. Highest Put build-up is at the strike of 9000 followed by 8500. Thus Options data suggest a trading range with Resistance at 9500 and Support at 9000.

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