4 August 2018

NIFTY WEEKLY PREDICTION & CHART FOR 06 AUG TO 10 AUG 18

DAILY RESISTANCE FOR NIFTY: 11425,11450,11475
PIVOT POINT:11350
DAILY SUPPORT FOR NIFTY :  11300,11275,11250
DAILY CHART FOR NIFTY


















WEEKLY RESISTANCE FOR NIFTY:11450,11500,11550
 PIVOT POINT: 11300
WEEKLY SUPPORT FOR NIFTY :  11250,11200,11150
WEEKLY CHART FOR NIFTY
NIFTY IN THE PAST WEEK

What a splendid week it turned out to be for our markets as we finally saw nifty hitting record highs. Throughout the week, Nifty maintained its positive posture and Friday’s session started with a bang at new highs. On Friday nifty future has opened at 11306 made a high of 110406 and low of 11302 and finally closed at 11396.   

Despite mixed global cues, the week started with mildly positive bias. During the initial trade on Monday, we did witness minor profit booking, which was probably a weak attempt to restrict the nifty below 11300. As a result, the early morning dip eventually got bought into and index went on to reclaim the 11300 mark on a closing basis. On Monday nifty future closed at 11338. On Tuesday the day started on a flat note in the absence of any major trigger from the global peers. The remaining part of the day was almost a replica of monday’s action as the index first corrected marginally in the initial hours and then a strong buying at lower levels pushed the index higher to clock smart gains of seven tenths of a percent to conclude at new high. Finally nifty future ended at 11371 on Tuesday. On Wednesday nifty had a flat start after seeing a smart recovery during the latter half of Tuesday. Nifty consolidated for the major part of the day; but volatility just kicked in once the RBI came out with its verdict on bi-monthly monetary policy. The market stabilized after some wild swings and the index eventually managed to close with negligible loss. Volatility was very much on cards considering the key event; but despite 25bps rate hike, index did not see any damage, which is certainly an encouraging sign. Nifty future closed on Wednesday at 11341. After the RBI monetary policy event on Wednesday, on Thursday nifty started on a weak note mainly on the back of some corrective moves seen in the global markets. However, as the sell off aggravated globally, our markets started to feel the rub off effect of the same and hence, we witnessed sustained weakness throughout the day to shed nearly a percent; becoming the weakest session after July 16. The Nifty future has ended at 11282.

NIFTY: A STRONG SUPPORT WILL BE @ 11200; STRONG RESISTANCE LEVEL SEEN @11500

Now, the nifty future have to hold above the 11375 -11400 zone to extend its upward move towards the 11435-11475 level. It has been making higher highs and higher lows for last four weeks and a hold above 11250 level would be important for the index to move higher. 

Minor support for the index lies in the zone of 11200 to 11175. Support for the index lies in the zone of 11150 to 11125. If the index manages to close below these levels then the index can drift to the levels of 11100 to 11050 where long term moving averages levels are lying. Resistance for the index lies in the zone of 11450 to 11500. If the index manages to close above these levels then the index can move to the levels of 11525 to 11550.

Broad range for the week is seen from 11200 on downside & 11500 on upside.

TECHNICALLY SPEAKING.

Nifty has came into its groove now and enjoying its spectacular Bull run. There has been no stopping for the market as we can see new highs getting clocked every day. Nifty above 11400 is finally a reality now and the recent anticipation has now become a confirmation.

The ‘RSI-Smoothened’ crossing the 70 mark (in upward direction) at the same time provided credence to this price configuration. After such a decent rally, is market overbought now? We would say not yet, there is still long way to go or we would rather reframe it as probably a start of new leg. With Friday’s closing, we can see a breakout from previous highs with a ‘Breakaway Gap’; indicating strong optimism to continue with some force. Since, we have entered an uncharted territory; it would be difficult to give precise levels. But, if we have to keep any number in our mind, then we would not be surprised to see index hastening towards 11500 – 11575 and beyond. As far as supports are concerned, 11200 followed by 11100 would be seen as immediate levels. Any possible decline towards these levels should ideally be used as a buying opportunity. Mind you, it’s just a beginning; traders should not hesitate even after this spectacular intra-week rally. One needs to pick a right proposition and should keep using decline to buy into. 

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