NIfty Index Chart Analysis

Indian market started the Samvat 2073 on sluggish note and the week was dominated by the chances of Trump winning the US elections and FPIs selling. The markets were not too happy about the possibility of Trump becoming the US president and we witnessed a global sell-off as a result of this. Towards the end of the week, the US DOJ (Department of Justice’s) investigation into generic pharma companies also took down the markets sharply. With healthy jobs data and positive PMI from key economies, the Fed may look to hike rates.

On the weekly chart, after a long struggle the bears pierced the crucial support level of 8480-8500 decisively. This resulted in formation of a strong bear candlestick pattern with decent volumes and this indicated that bears were in a commanding position. Going ahead the zone of 8300-8320 is likely to act as a crucial support level. A decisive breach of this zone is likely to open gates for a correction up to levels of 8150-8100 in the medium term. On the upside, the zone of 8650-8680 is likely to act as a stiff resistance level in the medium term. A decisive move above this zone is likely to open up for upmove up to levels of 8800-8830. On the weekly scale, the RSI is quoting around 49 levels and the zone of 45-48 may offer some support.



Nifty after registering a swing high of 8968.70 levels formed a sequence of lower top and lower bottom. At present, Nifty has breached the neckline of ‘Head and Shoulders’ pattern, which is a reversal pattern that forms after an uptrend. The ‘Head and shoulders’ pattern is not a perfect text book pattern but it’s a potential one. Now, going forward. the important support level for Nifty is around the zone of 8300-8320 as this zone had earlier acted as a strong resistance zone; hence, old resistance is likely to act as support. A decisive breach of this support zone is likely to open gates for correction up to levels of 8150 which is a potential target of the Head and Shoulders pattern. On the upside, the zone 8550-8580 will act as a stiff resistance for Nifty. A close above the zone of 8550-8580 is likely to open gates for upmove up to levels of 8680.
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The stock is currently trading at Rs.507. Its 52 week high/low stands at Rs.566/Rs.312, made as on October 07, 2016 and February 29, 2016. The stock after registering a low of Rs.335.10 in the month of June has moved northward and formed sequence of ‘Higher top higher bottom’ pattern. In the current scenario the stock has managed to sustain above retrenchment level of 38.2 per cent which is Rs.478 from the levels of Rs.334 to Rs.567, indicating that the stock may see recovery from current levels. The stock has vital support at lower levels of Rs.473 and Rs.434, which are its 100-day EMA and 200-day EMA levels respectively. The stock is showing good strength above this level. By weighing all the possibilities, we recommend buy in Sun TV at Rs.507 level with a target of Rs.540 followed by Rs.560 and a stop loss of Rs.460, so traders can initiate long position with given stop loss. 

The stock is currently trading at 243 levels. Its 52 week high and low stands at Rs.246/ Rs.107 made on November 03, 2016 and January 19, 2016. In October first week, the stock witnessed bullish breakout after breaking the technical level of Rs.200; actually at the same level stock formed ‘ Three white soldiers ’ pattern along with huge volumes in 1 year daily chart. Recently the stock also witnessed ' DOJI ' candle. On the lower levels the stock has vital support around its 50 day EMA level of Rs.214 and its 100-day EMA of Rs.197, indicating that the stock may see massive recovery to cross it 52-week high. Moreover, the momentum oscillator RSI is indicating some more strength. By taking into consideration all the parameters, we recommend buy in Cairn India at Rs.243 level with a target of Rs.265 followed by Rs.275 and a stop loss of Rs.220.