Nifty Weekly Analysis for the week ending 24 November 2017

Sensex opened the week at 33366, made a high of 33739, low of 33288 and closed the week at 33679. Thus it closed the week with a gain of 336 points (1.01%). At the same time the Nifty opened the week at 10287, made a high of 10404, low of 10261 and closed the week at 10389. Thus the Nifty closed the week with a gain of 106 points (1.03%)

Let us discuss few observations on last week Indian benchmark movements. 

1. Last week we have discussed “Holding 50% Fibo level indicates strength of the market.   Protecting Wednesdays low of 10094 / 32684 is important for Nifty and Sensex for further upmove..”  Benchmark index protected Last Wednesday’s low.  Nifty gained 310 points which is 78% of the fall.  At the same time Sensex gained 1054 points which 89% of the fall in 7 days.    
2. Nifty closed well above all important moving averages.  
3. On Weekly Chart, both Sensex and Nifty made a bullish follow up candle to last week’s hammer type candle.
4. In the coming week, we have expiry  coming  up for current derivate series.   Also monthly closing also on the coming week.   Both happening on Thursday.  
5. Looking at the Bank Nifty chart, which is making a bullish flag type chart pattern.              
6. On Daily Chart MACD nearing a bullish crossover and Stochastic reached in the oversold region..  . 
7. Global financial markets: Except the Chinese financial markets, all global indices registered gains over the week
8. On Weekly basis, FII were buyers in the cash segment. 
9. Options data for November series indicate highest Call Open Interest is at the strike of 10500 whereas the highest Put build-up has shifted higher at 10300. Thus Options data suggests a very narrow trading range with resistance at 10500 & support at 10300.  There is a huge  addition of Open Interest at 10400 put strike and we can see unwinding of open interest on all call strike, which indicate bullishness of the market.