Sensex opened the week at 35021, made a high of 35357, low of 34848
and closed the week at 34915. Thus it closed the week with a loss of 54 points
(-0.16%). At the same time the Nifty opened the week at 10706, made a high of
10785, low of 10602 and closed the week at 10618. Thus the Nifty closed the
week with a loss of 74 points (-0.69%).Let us discuss few observations on last
week/month Indian benchmark movements.
- On the daily charts, both the indices have formed a real Black body candle. Also the indices made black candles for last three days. Three Black Crows is a Bearish Reversal pattern, but when considering weekly Three White Crows formed significance of daily three Black Crows are insignificant. Also this three Black Crows made after Three White Soldiers. This three Black crows not able to break Three White soldiers low of 10559.
- On the weekly timeframe, Sensex has formed a small body with an upper shadow whereas Nifty has formed a black body candle. Even the candle looks bearish, it protected previous low and also made higher high on weekly time frame.
- Both the indices made 6th weekly higher high, higher low candles in a row.
- Nifty made a correction of 1220 points in 37 days. Now the Pull Back gained 833 points in 25 days. Three days fall took 183 points.
- Last week we have mentioned “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”. Both the Indices filled the gap bu not able to close above the gap. So this area still act as a strong resistance.
- Immediate resistance for Nifty is 10785-11000 range. Immediate support is 10515-10500 range.
- If Nifty not fall below 9952 and managed to close above 10785 then more upside possible.
- India Vix closed the week at 13.25
- 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 10400/10500. Thus Options data suggests a trading range with resistance at 11000 & support at 10400/10500
- Global financial markets: Asian stock markets finished lower and European and US Market finished higher..
- FIIS are net sellers this week on cash segment.
