Nifty Weekly Analysis for the week ending 09 March 2018

Sensex opened the week at 34034, made a high of 34060, low of 32991 and closed the week at 33307. Thus it closed the week with a loss of 739 points (-2.17%). At the same time the Nifty opened the week at 10428, made a high of 10441, low of 10142 and closed the week at 10227. Thus the Nifty closed the week with a loss of 231 points (-2.21%).

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

1. On the weekly charts, both the indices have formed a big Opening Black body Marubuzo, and closed well below previous four weeks candles .
2. Last week we have discussed “Nifty in a formation of bearish pennant pattern.  On breakdown below 10300 on closing basis, it will result in the resumption of the down move. Hence, as long as the market consolidates without such a breakdown, chances of a breakout will remain higher with a target of 10,800 levels.”.  Nifty closed below 10300 level on Tuesday.  On Wednesday Nifty turned negative further and made a low of 10141.5.   Wednesday’s low of 10141.5 will act as an immediate support  and 10450 -  10535 will act as a strong resistance. 
3. In 25 days from 29 Jan, Nifty made a fall of 103  points which is 90% retracement from 1033 to 11171.  Now Nifty on a pull back from 10141.5 to 10296.7.  50% of retracement from entire fall comes around 10650 level and 61.8% retracement level comes around 10771 level.
4. India Vix closed the week at 14.53.
5. Options data for March series indicate highest Call Open Interest is now at the strike of 10500 whereas the highest Put build-up is at the strike of 10000. Thus Options data suggests a trading range with resistance at 10500 & support at 10000.
6. Global financial markets: Global Stock trimmed its Losses after robust US Jobs Data 
7. FIIS are net sellers this week.