Archives : BEARISH DOJI ON WEEKLY CHARTS - 07/11/2014.

BEARISH DOJI ON WEEKLY CHARTS - 07/11/2014. 

LISTLESS WEEK ENDS FLAT.

It was an extremely dull week as far as the indices were concerned as both indices ended the week as flat as possible. It seemed both the Bulls and the Bears were enjoying extended holidays post Deepawali which was very much evident in the daily and weekly candlestick pattern formations; as all the formations were neutral. Currently there is no threat to even the short term trend as every dip is being bought. But the coming week promises lot more action and fireworks as the market gears up to further extend its gains.

 

 


BEARISH DOJI ON WEEKLY CHARTS - 07/11/2014. 

LISTLESS WEEK ENDS FLAT.

It was an extremely dull week as far as the indices were concerned as both indices ended the week as flat as possible. It seemed both the Bulls and the Bears were enjoying extended holidays post Deepawali which was very much evident in the daily and weekly candlestick pattern formations; as all the formations were neutral. Currently there is no threat to even the short term trend as every dip is being bought. But the coming week promises lot more action and fireworks as the market gears up to further extend its gains.

TECHNICALLY SPEAKING.

Sensex opened the week at 27943, made a high of 28010, low of 27739 and closed the week at 27868. Thus it closed the week with a minor gain of 3 points. At the same time the Nifty opened the week at 8348, made a high of 8365, low of 8290 and closed the week at 8337. Thus the Nifty closed the week with a gain of 15 points.

Both the indices have formed neutral formation on all the three working days of the week and even on the weekly charts. Both Sensex and Nifty have formed a small body Spinning Top on Friday; but that seemed to be the case on previous two days also, almost forming a rare Bearish Tri-Star formation. This requires a confirmation in the form of a real black body candle on Monday. On the weekly charts, both Sensex and Nifty have formed Bearish Doji formation. This formation also requires confirmation in the form of black body candle in the next week. Thus next week’s candle formation will be critical for the fate of short term trend.

Last week both the indices have left behind a Bullish Rising Gap between Sensex 27438-27390 and Nifty 8198-8181 on Friday. This gap will not only act as a support but it can also be interpreted as a Measuring Gap and the target as per Gap Theory falls at Sensex 28918 and Nifty 8656.

Both the indices continue to remain above the short term average of 20dma (Sensex – 26826 and Nifty – 8010), medium term average of 50dma (Sensex – 26806 and Nifty – 8014) and even above the long term average of 200dma (Sensex – 24173 and Nifty – 7215). Thus the trend in the short term, medium term and the long term timeframe remains bullish.

MACD and Price ROC are both positive and continue with their buy signals. RSI @ 71 has turned overbought and so has the Stochastic oscillator (%K at 95). But both of them still continue to show strong bullish momentum. MFI (71) continues to show strength and suggests positive money flow in the market. ADX has improved to 26, which indicates that the uptrend is now gaining strength. Direction Indicators continue in buy mode as +DI remains above –DI. Bollinger Band continues in Buy mode. Except for certain Oscillators which are overbought, majority of the Oscillators are suggesting bullishness in the short term. 

Option data for the current series, shows highest Put Open Interest at the strike of 8000 and highest Call build-up has shifted to the strike of 8400. Thus Option data suggests a trading range with support coming in at 8000 and resistance around 8400. On Friday, 8400 Call has seen strong Open Interest buildup which suggests immediate resistance at the level of 8400.

Trendline Resistance for the Sensex falls at 28331.

Trendline Resistance for the Nifty is at 8478.

INDEX LEVELS:

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

7936

8064

8198

8337

8440

8548

8656

Sensex

26615

26971

27438

27868

28272

28595

28918

LAST WEEKS RECOMMENDATIONS:

STOCK

Reco. Price

Tgt

Reached

Lot Size

Profit

DivisLab

1875

1932

1875

125

Rs. -

Buy SBI

2702

2793

2800

125

Rs.12,250

M&M Fin

293

310

312

1000

Rs.19,000

Buy IDFC

156

163

158

2000

Rs. 4,000

Buy JMFin

47

51

52

8000

Rs.40,000

Total

Rs.75,250.

THIS WEEKS RECOMMENDATIONS:

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy ABNuvo

1738

1694

1807

1878

Buy CoLPaL

1780

1746

1832

1885

Buy SunPh

894

869

932

971

Buy IOC

375

364

393

411

Buy AllCargo

281

266

306

333

WATCH OUT FOR:

Allcargo

Praj

Disclaimer : The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness.

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