Nifty Weekly Analysis for the week ending 27 April 2018

Sensex opened the week at 34494, made a high of 35065, low of 34259 and closed the week at 34970. Thus it closed the week with a gain of 554 points (1.61%).  At the same time the Nifty opened the week at 10592, made a high of 10720, low of 10515 and closed the week at 10692. Thus the Nifty closed the week with a gain of 128 points (1.21%).

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

1. On the daily charts, both the indices had made a gap-up opening followed by a formation of Opening White body Marubuzo.   Both the gap up and White body Marubuzo affirms bullishness.
2. On the weekly timeframe, both Sensex and Nifty have formed a real white body candle.  
3. Both the indices gained for the fifth week in a row which is longest winning streak in a year.
4. Nifty made a correction of 1220 points in 37 days.  Now the Pull Back gained 768 points in 23 days.  In timewise so far Nifty retraced fast compared to the down fall which shows dominance to bulls. 
5. Nifty managed to close above previous swing highs of 10478 and 10631.  
6. The trend in short term, medium term as well as in the long term timeframe continues to remain Bullish.
7. The Pull-Back rally is now testing the 61.8% 66%  levels which is a major resistance point.
8. Both the indices have a Weekly Bearish Gap between Sensex 34874-35006 and Nifty 10702-10736. This Gap is aided by 61.8% -66%  Retracement of the current fall (Sensex – 34931 and Nifty 10706), which is a Reversal level.
9. Volatility was less during the week.  India Vix closed the week at 12.02
10. Options data for May series indicate highest Call Open Interest is at the strike of 11000 whereas the highest Put build-up is now at the strike of 10500. Thus Options data suggests a trading range with resistance at 11000 & support at 10500.
11. Weekly Stochastic near the overbought territory
12. Global financial markets: Asian stock markets finished positive. 
13. FIIS are net sellers this week on cash segment.  
14. The coming week will be a truncated one, with Tuesday being a trading holiday.