Saturday, 10 June 2017

Nifty Weekly Analysis for the week ending 9 June 2017

Key events happened during the week:
  •           The RBI kept key policy rates unchanged while reducing the SLR by 50 bps to 20%.
  •           Neighbouring Arab countries cut ties with Qatar
  •           Hung Assembly in UK Parliament


In this week Sensex / Nifty made another record high of 31430.32/9709.3.  Nifty opened the week at 9656.3, made a high of 9709.3, low of 9608.15  and closed the week at  9668.25. Thus it closed the week with a gain around 14.75 points (0.15%).   After 4 consecutive weekly higher high Sensex closed with a modest loss of 11 points (0.014%).  Sensex made a weekly doji candle. Even though it  signalling some lacklustre type move at the higher levels, but the underlying trend of the Index as per larger timeframe is still up and there is no indication of any reversal signal yet at the highs.    

First day of the week, Nifty made another record high of 9687.2 and end at a fresh closing high of 9675.10.  On Tuesday. Nifty made another record high of 9709.3 and edged down . Nifty made an engulfing line bear candle.   Nifty made a doji on Wednesday showing indecision.  On Thursday, Nifty made a gap up opening but not able to reach ELB high and closed negative below previous day closing.  On Friday Nifty opened with negative note and break the low of ELB made on Tuesday.  But in afternoon made a smart recovery and closed near the high of the day.
I have mentioned in my post dated 27th May, “… target for current upmove can be 9684-9800 level”.  Nifty reached the target level on Tuesday, up 368 points from the swing low in 12 days, still 90 point less compared to previous swing from 19 April to 17 May (19 days).    So watch for 9800 level in next two weeks time. In order to achieve 9800 level Nifty should close above ELB high.

In the Option front, compared to Call side Put side Option Interests are more significantly which indicate bullishness of the market.  Put side 9600, 9500  and 9400 got highest open interest which can act as a support during June series. 

Upcoming Major Event :

FOMC meeting  on June 14th

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