Archives : 2017 - ENDS WITH A BANG - 29/12/2017

2017 ENDS WITH A BANG - 29/12/2017.

 

Wishing All Our Readers A Very Happy & Prosperous Trading Year – 2018.

 

BULL RALLY TO CONTINUE IN 2018.

 

2017 was a year for the Bulls as they grabbed all the opportunities which were thrown at them and as a result the indices are up a whopping 28% for the year. The coming year 2018 will see the current Bull market progress further and make huge strides. The Correction is now complete which has led to the formation of higher bottom at Sensex 32565 and Nifty 10033. As long as the indices continue to trade above the higher bottom, one can expect Nifty to achieve targets of 10947-11293-11413.

 


2017 ENDS WITH A BANG - 29/12/2017.

 

Wishing All Our Readers A Very Happy & Prosperous Trading Year – 2018.

 

BULL RALLY TO CONTINUE IN 2018.

 

2017 was a year for the Bulls as they grabbed all the opportunities which were thrown at them and as a result the indices are up a whopping 28% for the year. The coming year 2018 will see the current Bull market progress further and make huge strides. The Correction is now complete which has led to the formation of higher bottom at Sensex 32565 and Nifty 10033. As long as the indices continue to trade above the higher bottom, one can expect Nifty to achieve targets of 10947-11293-11413.

 

TECHNICALLY SPEAKING.

 

Sensex opened the week at 33980, made a high of 34137, low of 33752 and closed the week at 34056. Thus it closed the week with a gain of 116 points. At the same time the Nifty opened the week at 10512, made a high of 10552, low of 10460 and closed the week at 10530. Thus the Nifty closed the week with a gain of 37 points.

 

On the weekly charts, both the indices have formed a small White body Star formation. On the daily charts both Sensex and Nifty have formed a big Opening White body Marubuzo. Thus daily as well as weekly candlestick pattern suggests a bullish bias in the near term.

 

Both the indices have completed bullish patterns on daily as well as weekly charts. On the daily timeframe, both the indices have completed a Bullish Saucer formation and the target for that falls at Sensex 35165 and Nifty 10947. On the weekly timeframe, a Bullish Flag pattern has been completed and the target as per that pattern falls at Sensex 35649 and Nifty 11293.

 

Four weeks back the indices suffered a classic Bear trap. It resulted in the indices making an intermediate higher bottom at Sensex 32565 and Nifty 10033. This is the support level from where the market has bounced back. The indices need to sustain above this level for the above mentioned targets to be achieved.

 

This week, both the indices continued to stay above the short term average of 20dma (Sensex - 33424 and Nifty - 10322) as well as the medium term average of 50dma (Sensex – 33330 and Nifty – 10315). Both the indices still remain well above the long term average of 200dma (Sensex – 31638 and Nifty – 9817).  Thus the trend in short term as well as medium term timeframe is Upward, whereas the trend in the long term timeframe still continues to remain Bullish.

 

On the weekly formation, both the indices had 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 continues in Buy mode. RSI (63) suggests continuation of Bullish momentum. The bullishness is yet to reflect in ADX as it still suggests consolidation phase. MFI (54) suggests Positive Money Flow. OBV continues in Buy mode. Thus Oscillators are suggesting a bullish bias for the near term.

 

Options data for January series indicate highest Call Open Interest is at the strike of 11000 whereas the highest Put build-up continues at the strike of 10300. Thus Options data suggests a trading range with resistance at 11000 & support at 10300.

 

INDEX LEVELS:

 

 

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

10182

10296

10407

10530

10641

10772

10868

Sensex

32886

33321

33707

34056

34375

34860

35283

 

THIS WEEKS RECOMMENDATIONS:

 

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy Page Ind

25541

24940

26447

27364

Buy SRF

1981

1938

2047

2115

Buy Tata Elxsi

977

955

1011

1047

Buy ReL Infra

553

540

573

595

Buy D-Mart

1181

1156

1221

1265

 

WATCH OUT FOR:

 

SRF
 
D-Mart

 

 

 


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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