After registering robust gains in the last week, Nifty continued its upside momentum during early part of week ended September 9, 2016, but was not able to sustain at higher levels and it ended the week with marginal gains. On the weekly time frame Nifty has formed a potential ‘Shooting Star Candlestick' pattern as against a long range bullish candle in the previous week. 'Shooting Star' formation is formed when the low and the close are roughly the same and this pattern is considered a bearish reversal pattern. Now going forward, the zone of 8680-8710 would act as crucial support levels for the Nifty in the short-medium term. Breach of this support zone will open up for a correction up to the levels of 8540 levels. On the upside, the zone of 8970-9000 would be a stiff resistance on the weekly basis for the Nifty. The Shooting Star Candlestick will be negated if Nifty on a weekly basis closes above the level of 9000. The RSI is quoting around 70 levels facing resistance around this zone.

                                               Nifty Index Daily Chart Analysis

Nifty after registering a swing high of 8968.70 levels, witnessed profit taking at higher levels. At present, Nifty is hovering around 23.8 per cent of recent up-move from the swing low of 8518 to high of 8968.70. The opening gap which was created on the September 6, 2016 is now open. Now going forward, important support for Nifty on daily chart is placed in the zone of 8740-8690, because the 50 per cent retracement of the entire up move from the levels of 8518 stands at 8740 levels and 61.80 per cent retracement level of the entire up move stands at level of 8690. However, if Nifty manages to close below its 61.80 per cent retracement level of 8690 in that case it’s likely to touch levels of 8620-8540. On the upside, the zone of 8970-9000 will act as a strong barrier for Nifty, however, a decisive close above 9000 levels will open way for new high for the Nifty and in this case Nifty will touch levels of 9100-9250. The daily 14-day RSI is quoting around 62 levels, immediate support on the RSI stands at 55 levels and major support stands at 48-50 levels.

Here are key levels to watch out for the short term

BSE Code: 532187: TGT1 : 1145: TGT2 : 1120 SL….1239

The stock is currently trading at Rs 1192. Its 52 week high/low stands at Rs 1255/799 made on September 07, 2016 and February 11, 2016. In the last few trading sessions, the stock witnessed strong up moves after taking vital support at the technical levels of Rs 1100 and Rs 1145. However, at present, the stock has formed couple of ‘Doji Candles pattern. Doji Candle formed a top of the trend is considered as a possible sign of reversal. The stock is trading around the crucial supports of Rs 1194 which is 15-day EMA level and 1189 which is 20-day EMA level. If it closes below these levels, then it confirms the bearish trend in the stock. Looking at the one year weekly chart RSI indicator at 67.75 indicates some overbought situation. By calculating it all, we suggest selling in the stock of IndusInd Bank at current levels for a near term target of Rs 1145-1110 with a stop loss of Rs 1239.