Nifty Weekly Analysis for the week ending 15 December 2017

Sensex opened the week at 33318, made a high of 33622, low of 32887 and closed the week at 33463. Thus it closed the week with a gain of 213 points (0.64%).  At the same time the Nifty opened the week at 10310, made a high of 10373, low of 10142 and closed the week at 10333. Thus the Nifty closed the week with a gain of 68 points (0.66%).

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

1. On the weekly charts, both the indices have formed higher high higher low candle which is a classic bullish setup.
2. On weekly chart almost a bullish hammer pattern is formed which is signalling an emergence of sharp buying interest from the lows. Confirmation require on next candle for bullish reversal. 
3. On the daily charts, both the indices made a gap up opening on Friday.
4. On the daily charts, both the indices have made higher high candle and made a highest closing in the week. 
5.  Last week I have mentioned “It is early to conclude the correction is over.   Because Indices are trading below slopping down trending channel connecting 6^th November and 28^th November.  Also lower top lower bottom is formed on weekly chart.  So until made a breakout above down trending channel and made a higher top, higher bottom candle on weekly chart we can consider this as a relief rally only.”.  Both indices made higher top, higher bottom candle on weekly chart but,  still trading below down trending channel line.  Market to close well above the channel line for the bullish reversal.   Also  Nifty should break above previous month high to negate the correction is completely over.    
6. Volatility peaked on Thursday and as soon as the Exit Polls results were out, the market experienced Volatility Crunch.
7. Next week’s movements are very crucial to decide market direction, because Gujarat and Himachal Pradesh results are coming on Monday. 
8. For next week, Thursday’s low is the crucial support.  If that was not held next support comes at 10033 – 10000 level.  Highest put side open interest, Down trending channel line support are placed near this levels.  For bulls closing above Friday’s high is required to gain the momentum.
9.  MACD has given a fresh Buy signal on daily chart.
10. Global financial markets: Global market ended on a mixed note.
11. On Weekly basis, FII were buyers in the cash segment. 
12. Options data for December series indicate highest Call Open Interest is at the strike of 10500 whereas the highest Put build-up continues at the strike of 10000. Thus Options data suggests a trading range with resistance at 10500 & support at 10000.