NEXT WEEK NIFTY PREDICTION & CHARTS 17 DEC TO 21 DEC 2018

WEEKLY RESISTANCE FOR NIFTY:10900,11000,11200

 PIVOT POINT: 10800

WEEKLY SUPPORT FOR NIFTY :  10700,10600,10500

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 10900,10950,11000

PIVOT POINT:10850

DAILY SUPPORT FOR NIFTY :  10800,10750,10700

DAILY CHART FOR NIFTY

Keeping all developments aside if we just have to analyze the price action, one would interpret this was a promising week for our markets.  The outcome of the five states election result ,the abrupt resignation of the RBI Governor Mr.Urjit Patel  & appointment of new Governor mr  Shaktikanta Das were the key factors which has moved nifty this week. On Monday The exit polls on state assembly elections kept nifty on tenterhooks. On Monday Nifty tanked 205 points, at 10488. On Tuesday Nifty opened on bearish note on but managed to recover from its crucial support at 10333 and headed towards 10550 level.  On Wednesday the market rallied after the major unknown of state elections got over and the government named Shaktikanta Das as the new governor of RBI to quickly fill in the vacuum created by the sudden resignation of Urjit Patel. The Nifty added 188 points to 10737. Thursday’s gap up opening was clearly a follow up move of Wednesday’s strong rally. Also, the global peers did not give any kind of disappointment as they were trading firmly in the green. Post the opening, index consolidated for a while and there was some momentum seen during the midst of the session which pushed the index well above the 10800 mark. However, a decent profit booking in the latter half resulted into a close tad below the opening point; eventually concluded with gains of half a percent markets finished Friday's choppy session on a positive note. However, gains were restricted as investors remained on the sidelines amid a crucial Reserve Bank of India board meeting. Nifty rose 13 points to settle at 10805.
NIFTY: A STRONG SUPPORT WILL BE @ 11000; STRONG RESISTANCE LEVEL SEEN @10500

This week low precisely coincides with the 61.8% Fibonacci retracement of the recent up move. Considering all these evidences, we will not be surprised to see this rally extending towards 10850 – 11000 over the next few sessions. However, since lot of events hovering around us, one need to be very watchful and should ideally stay light on positions. For the coming session, 10900 should be seen as a key resistance and a sustainable move beyond this would extend the move towards above mentioned resistance levels. On the downside, 10600 and 10500 are likely to provide some support.  we can see a convergence of two important trend lines on daily chart precisely around the same level. Hence, unless we see Nifty breaking out convincingly from this wall, traders should avoid aggressive bets in the market. However, having said that considering the broader market participation, we will not be surprised to see it happen soon. Post the breakout, we may see further leg in the upward direction getting unfolded towards 10940 and above. On the downside, 10700 and 10600 are now seen as key support levels.

TECHNICALLY SPEAKING.

The Relative Strength Index (RSI) on the Daily Chart is at 55.4077 and it continues to remain neutral showing no divergence against the price. Daily MACD remains bearish while trading below its signal line. In the process, the Nifty has formed a small back body on the Candles, which resembles a kind of a Spinning Top. Such formations occur when market participants are indecisive at higher levels. Further pattern analysis reveals that the Nifty has encountered resistance at the falling trend line that joins the high of 11,000 with the subsequent lower top of 10900. Next week is likely to exhibit tentative mood and we expect the high of 10,838 to pose resistance in all probability. On the lower side, the behavior of the Nifty as against the 200-DMA, which is at 10750, will be key.  In all likelihood, we expect markets to remain tentative and continue to consolidate at higher levels. We strongly suggest avoiding fresh purchases at higher levels and concentrate more on protecting profits with each up move that the markets .