Nifty Weekly Analysis for the week ending 06 April 2018

Sensex opened the week at 33031, made a high of 33698, low of 32973 and closed the week at 33627. Thus it closed the week with a gain of 658 points. At the same time the Nifty opened the week at 10152, made a high of 10350, low of 10111 and closed the week at 10332 (2%). Thus the Nifty closed the week with a gain of 218 points (2.15%). Both the Sensex & Nifty ended with strong gains for the second consecutive week by rallying 2%

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

1. On the daily charts, both the indices formed a Bearish Engulfing pattern on Wednesday. The next day saw a gap-up opening and formation of Opening White body Marubuzo which closed above the top of Bearish Engulfing pattern, thereby negating the Bearish Engulfing pattern itself. On Friday, both Sensex and Nifty have formed a small white body Spinning Top.
2. Last week we have discussed “On the weekly charts, both Sensex and Nifty formed a white body candle forms a Tweezer Bottom candle.   Tweezer bottom formed near an important level near 27 month long upward trendline support... For the coming week, last week low and high will act as an immediate support and resistance.“  Nifty broke last week high and have formed a big White body candle with a gain of 2.15%.  This is the 2^nd consecutive bull weekly candle.
3. This is the first time Nifty / Sensex is making two consecutive weekly bull candle since 29^th January 2018. 
4. Both Sensex and Nifty still not violated 27 month long upward trending line.   Tweezer bottom happened near to trendline support.  Also Both Sensex and Nifty closed above 2 months long down trending channel.
5. Immediate resistance for Nifty is 10372-10400 level and crucial upward resistance is 10479-10500 level.  
6. On the downside immediate support comes in the range of 10100-10111 and the crucial downward support of 9950-9952 level. 
7. India Vix closed the week at 14.75.
8. Options data for April series indicate highest Call Open Interest is now at the strike of 11000,10500,  10700 & 10300 whereas the highest Put build-up still remains at the strike of 10000. Thus Options data suggests immediate resistance of 10500 and support at 10000
9. Global financial markets: Asian stock markets finished mixed.  Meanwhile, European markets, were trading on a negative note. 
10. FIIS are net sellers this week on cash segment.