Archives : CONFLUENCE OF TARGETS BETWEEN 10000-10400 - 21/04/2017

CONFLUENCE OF TARGETS BETWEEN 10000-10400 - 21/07/2017.

 

NIFTY 10000 – WITHIN STRIKING DISTANCE.

 

Just as last week, this week too the Nifty has closed shy of the much awaited 5-digit mark. There is no doubt regarding Nifty surpassing this level, with good chance of it happening in the very near future. More interesting aspect is that, there exists a strong confluence of Long Term and Medium Term Targets lined up between Nifty 10100-10400. As a result, this may attract some profit booking from market participants. Any consolidation thereof is always welcome as it provides fresh impetus to the ongoing rally.

 



CONFLUENCE OF TARGETS BETWEEN 10000-10400 - 21/07/2017.

 

NIFTY 10000 – WITHIN STRIKING DISTANCE.

 

Just as last week, this week too the Nifty has closed shy of the much awaited 5-digit mark. There is no doubt regarding Nifty surpassing this level, with good chance of it happening in the very near future. More interesting aspect is that, there exists a strong confluence of Long Term and Medium Term Targets lined up between Nifty 10100-10400. As a result, this may attract some profit booking from market participants. Any consolidation thereof is always welcome as it provides fresh impetus to the ongoing rally.

 

TECHNICALLY SPEAKING.

 

Sensex opened the week at 32053, made a high of 32131, low of 31626 and closed the week at 32028. Thus it closed the week with a minor gain of 8 points. At the same time the Nifty opened the week at 9908, made a high of 9928, low of 9792 and closed the week at 9915. Thus the Nifty closed the week with a gain of 29 points.

 

On the daily charts, Nifty has formed a pattern like Bullish Harami, but that cannot be the case as it has happened at the top of the upward trend. Sensex has formed Doji which just falls short of being called a Dragon-fly Doji because of the existence of small upper shadow. On the weekly charts, both Sensex and Nifty have formed a Doji which again falls short of being called a Dragon-fly Doji due to the existence of small upper shadow. Thus daily as well as weekly candlestick patterns indicate sluggishness while moving upwards.

 

Three weeks back the market rebounded after taking support at the 50dma and as of now the indices are at life-time high levels. On the weekly charts, both Sensex and Nifty have completed a second degree Bullish Flag pattern, the target for which falls at Sensex - 33619 and Nifty – 10343. The above targets will be achieved as long as Sensex remains above 30680 and Nifty above 9448.

 

Both the indices continue to remain above the short term average of 20dma (Sensex – 31505 and Nifty – 9719), medium term average of 50dma (Sensex – 31170 and Nifty – 9628) and even the long term average of 200dma (Sensex - 28808 and Nifty – 8905). Thus the Trend in the short term, medium term and even the long term timeframe continues to remain Bullish.

 

The current Rally has produced two major Bullish Gaps. The first Bullish gap between Sensex 29780-29681 and Nifty 9250-9225 will not only act as Support but holds the key to intermediate trend. The second Bullish Gap which is more significant as it is also a Weekly Gap i.e. between Sensex 29356-29098 and Nifty 9060-8977 hold the key to the long term trend. Besides acting as a support, this gap also acts as a Measuring Gap. The target as per Gap theory falls at Sensex 32737 and Nifty 10144.

 

A Saucer pattern was completed when the indices closed above Sensex 29077 and Nifty 8968. The complete pattern target which is at Sensex 32437 and Nifty 10043 remains to be achieved. On the weekly formation, both the indices completed a Cup and Handle formation and the targets are Sensex 34677-37554 and Nifty 10536-11413.

 

If one considers the Cup and Handle formation of 7 years from 2007 to 2014, the target for that pattern falls at Sensex 34715 and Nifty 10462. The Golden Ratio target of the current pattern weekly pattern of 2 years is at Sensex 34677 and Nifty 10536. Thus in the medium term one can expect a test of the above targets i.e. Sensex 34677-34715 and Nifty 10462-10536.

 

MACD and Price ROC, both are positive and in Buy mode. RSI (68) suggests strong bullish momentum. Stochastic Oscillator %K (91) is above %D and hence in Buy mode. ADX has increased to 31, which suggests that the Uptrend is gaining strength. Directional Indicators continue in Buy mode as +DI is above –DI. MFI (84) suggests Positive Money Flow. OBV continues to make higher tops and bottoms. Bollinger Band continues with its Buy signal. Thus Oscillators are suggesting a bullish bias.

 

Options data for July series indicate highest Call Open Interest is at the strike of 10000 and highest Put build-up has shifted higher at 9800. Thus Options data suggests a trading range with resistance coming in at 10000 and support at 9800.

 

INDEX LEVELS:

 

 

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

9589

9709

9824

9915

9978

10043

10144

Sensex

31097

31426

31731

32028

32389

32737

33089

 

THIS WEEKS RECOMMENDATIONS:

 

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy Britannia

3834

3764

3941

4051

Buy BemL

1588

1544

1655

1725

Buy InFiBeam

1270

1240

1315

1362

Buy TataMotors

464

456

477

491

Buy IDBI

59

57

63

67

 

WATCH OUT FOR:

 

BEML

 

Manappuram Fin

 

 

 

 

 

 

 


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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