Weekly Technical Report For Nifty And Sensex

In our previous weekly report we had mentioned that if nifty trades and close below 10420 level then it was likely to test 10379 – 10339 - 10292 levels. The week began on a pessimistic note, made a low of 10254 which was within the mentioned levels. The Sensex ended with a net loss of 1.10% whereas nifty lost 1.25% vis-à-vis the previous week. Pattern Formation

·On the Weekly chart,

We are observing a spinning top candlestick pattern which suggests that prior up trend is losing breath.

·On the Daily chart,

We are observing that prices have come closer to the demand zone of 10251 to10112. Further, we are observing three narrow range body formations which suggest Indecisiveness prevailing at current level.

Future Outlook: The current price action both on weekly as well as on the daily chart suggests that markets are cautious at current level. At present Nifty has resistance at 10440 – 10509 – 10590 levels whereas on the downside it has support at 10202 – 10133 - 10053 levels.

In coming week if nifty trades and close above 10371 level then it is likely to test 10440 – 10509 – 10590 levels. However, if nifty trades and close below 10271 level then it can test 10202 – 10133 - 10053 levels. Broadly, for current week we are of the opinion that the demand zone 10251 to 10112 holds significance going forward. Any breach of the mentioned demand zone would intensify the selling pressure. However, if nifty holds the above mentioned demand zone there is high probability that nifty may test 10400 - 10500 levels in couple of weeks.