Nifty Weekly Analysis for the week ending 05 January 2018

Sensex opened the week at 34059, made a high of 34189, low of 33703 and closed the week at 34154. Thus it closed the week with a gain of 97 points (0.28%). At the same time the Nifty opened the week at 10532, made a high of 10566, low of 10405 and closed the week at 10559. Thus the Nifty closed the week with a gain of 28 points (0.27%). Both Indices made highest closing in the first week of 2018.

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

1. On the daily charts, Sensex has formed a big Opening White body Marubuzo whereas Nifty has formed a Real White body candle which is formed after a gap up action.  Both Indices made a weekly close with record high.  Daily pattern indicate bullish possibilities. 
2. On the weekly charts, both the indices have formed a hanging man pattern.  So closing above hanging man high required to invalidate bearish possibilities. 
3. Indices retraced fully  its 21 days correction in 21 days.  Timewise Indices took same time of correction only and retraced more than 100% which is a bullish signal. 
4. Bearish Divergence still persist in RSI.  The weekly MACD is has shown a positive crossover..  
5. The Index maintained positive bias with higher high and higher low sequence and gained for 5^th consecutive week.  Last week we mentioned “Looking at the bull trend from 2016, maximum number of weekly bull candle is 5.  So probably there is a chance of correction in coming week or the week after coming week”
6.  Global financial markets: Global stock markets started the new year on a positive note
7. On Weekly basis, FII were buyers in the cash segment. 
8. Options data for January series indicate highest Call Open Interest is at the strike of 11000 whereas the highest Put build-up has shifted higher at the strike of 10400. Thus Options data suggests a bullish bias with a support of 10400. Also there is highest put option addition at 10500 PE.