APPROACHING
THE RESISTANCE ZONE.
Future
outlook Since the last week of March, our markets have somehow managed to
stabilise from recent mayhem and then gave some decent recovery thereafter.
Until Tuesday’s session, Nifty was struggling to surpass the 9400 mark. But due
to strong buying momentum in last couple of sessions, the Nifty finally broke
out from this sturdy wall and went on to close convincingly above 9800 mark.
The Market
saying “Stronger the Fall, Sharper the Rise” seems to be coming true. Nifty
fell by almost 40% in a matter of 7 weeks, and the subsequent Pull-Back of
around 32% from the bottom has been equally sharp and that too in a matter of
just 6 weeks, which has resulted in the Short and Medium term Trend turning Up.
As Nifty continues to tread higher, the question on everyone’s mind
remains: Is the Bear Market over? The answer is in the Negative. We are in
midst of a Bear Market Pull-Back which tends to be very sharp and short
lived. As we approach strong Resistance Zone 10159-10294, there is a
possibility that this Pull-Back might get completed and the DownTrend will
resume.
TECHNICALLY
VIEW.
Sensex opened the week
at 31659, made a high of 33887, low of 31651 and
closed the week at 33717. Thus it closed the week with a strong gain
of 2390 points. At the same time the Nifty opened the week
at 9259, made a high of 9889, low of 9250 and closed the
week at 9859. Thus the Nifty closed the week with a gain
of 705 points.
On the
daily charts, both the indices have formed a White body candle which is smaller
than a Real body candle, but after a big Upward Gap. On the weekly charts, both
Sensex and Nifty have formed a Big Opening White Body Marubuzo, which is
aiding in continuation of Upward rally. Thus daily as well as weekly
formations suggest a Bullish Bias in the near term.
MACD
and Price ROC are both positive and in Buy mode. RSI (59) suggests Bullish
bias. Stochastic Oscillator %K (96) is above %D and hence in Buy mode. ADX (24)
suggests that the Downtrend has lost almost all of its strength. Directional
Indicators are in Buy mode as +DI is above –DI. MFI (73) suggests Positive
Money Flow. Thus Oscillators are painting a Bullish
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