NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 16 SEP TO 20 SEP 2019

WEEKLY RESISTANCE FOR NIFTY: 11150, 11250, 11350

 PIVOT POINT: 11000

WEEKLY SUPPORT FOR NIFTY:  10900, 10800, 10700

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 11125, 11175, 11225

PIVOT POINT:11100

DAILY SUPPORT FOR NIFTY :  11050, 11000, 10950

DAILY CHART FOR NIFTY

The Market started the week marginally negative as the Nifty sneaked below 10900 in the first 15 minutes of the trade. However, this early morning dip was bought into as the index recovered sharply to reclaim the 11000 mark. For rest of the session the index consolidated in a range to end around 11000 mark. Post a mid-week holiday on Tuesday our markets started on a mild positive note on Wednesday. Subsequently, there was no major action in index front and after consolidating in a range for the most part of the session, Nifty eventually ended near the opening levels with gains of 0.30% at 11036. Although the index started the session marginally positive on Thursday, the Nifty lacked follow up momentum during the day. Post noon, the index corrected for rest of the session and ended the day with a loss of about half a percent. On Friday the  Sensex - which switched direction at least eight times during the session after opening higher - moved in a range of 413 points, before settling with a gain of 280 points at 37384 for the day. The Nifty recovered as much as 138 points from an intraday low of 10945 to touch 11084 at the day's strongest level, before shutting shop on Friday at 10982. 

NIFTY: A STRONG SUPPORT WILL BE @ 11800; STRONG RESISTANCE LEVEL SEEN @11300

It was flawless week for traders (with bullish view) wherein the index provided a good buying opportunity. Post registering a low tad below 10900, the Nifty rallied smartly along with broad market participation and reclaimed the 11000 mark. In this process, both the indices Nifty and BankNifty surpassed the high of the ‘Dragonfly Doji’ pattern formed on the weekly chart and have closed above the same, thus confirming a reversal. Although the index consolidated around 11000 for most part of the days, the stock specific momentum in the broader markets provided good trading opportunities. Except IT, most of the sectors participated in the upmove and the Midcap index witnessed outperformance. The upmove in the midcap space is much on expected lines considering this is the probable reversal month as per the ‘Fibonacci Time Retracement’. Considering Friday’s move in the broader markets, we expect the index to head towards the 11200-11300 mark soon (which we eventually expect to be surpassed). On the flipside, the immediate supports for the index are placed around 10900 and 10880.

TECHNICALLY SPEAKING.

Now in terms of levels, we are almost unmoved on a weekly basis but the development that happened during the week was encouraging and adds further conviction to our previous week’s optimistic stance. In the previous article, we had highlighted few notable observations which are hinting towards some hope of relief in the September month. Addition to that, this week we can see a possibility of base shifting higher to 10800 from 10700. The weekly charts of Nifty and Bank Nifty exhibits copy book ‘Bullish Dragonfly Doji’ patterns and the Nifty depicts a ‘Bullish Hammer’ around the cluster of supports. We also did some time analysis for midcap index and as per the historical evidences; the September month is 22nd (Fibonacci number) from January 2018 which may possibly turn out to be a reversal point. And now if we try to apply the same theory on Nifty weekly chart, the forthcoming week would be the 22nd week in the 8th zone of ‘Fibonacci Time Retracement’. Yes, it sounds extremely optimistic but we remain hopeful and expect the index to initially head towards 11200 – 11300. In fact, we will not be surprised to see this sturdy wall getting demolished quite soon to extend the relief move towards 11400 – 11500. On the lower side, immediate supports are placed at 11100 – 11000 but the validity of above mentioned pointers remains intact as long as key support of 10900 – 10800 remains defended successfully.