NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 2 DEC 6 DEC 2019

WEEKLY RESISTANCE FOR NIFTY: 12200, 12300, 12400
 PIVOT POINT: 12100

WEEKLY SUPPORT FOR NIFTY:  12000, 11900, 11800

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 12150, 12200, 12250

PIVOT POINT: 12100

DAILY SUPPORT FOR NIFTY:  12050, 12000, 11950

DAILY CHART FOR NIFTY

In the penultimate week, we saw some indecision in the market around 12000 which eventually resulted into a decline towards 11900. However, on Monday, the week kick started on an optimistic note and marked a fantastic intraday rally to reclaim 12000 with some authority. Clearly the opening day had set the tone for the rest of the week. In-line with this, the rally extended as the week progressed and finally on Thursday, the Nifty surpassed its previous record highs to mark a new number of 12158.80. However on Friday, the Asian bourses once again looked a bit nervous and as a rub off effect of the same, we witnessed some profit booking to conclude the week tad above the 12050 mark.  We have been quite vocal since last few weeks that it’s a matter of time we would see Nifty clocking fresh record highs and finally it’s a reality now. In fact, despite the penultimate week’s tail end decline, we remained firm and advised using this as a buying opportunity. The strategy played out well and in spite of slightly weak day on Friday, we continue with our positive stance on the market. The benchmark index has registered a highest ever weekly as well as Monthly close and the way charts are shaped up, we expect continuation of the northward trajectory.
NIFTY: A STRONG SUPPORT WILL BE @ 12000; STRONG RESISTANCE LEVEL SEEN @12400

The near term trend continues to be positive and hence, we continue with our optimistic stance and advice traders to avoid taking contra bets and trade with a positive bias. The immediate support for Nifty is placed in the range of 12000-11900 followed by 11800 whereas the potential near term targets for the Nifty are seen around 12200 and 12300.

TECHNICALLY SPEAKING.

For the coming week, our projected targets are around 12200 – 12300 and if we stretch a time period a bit, we will not be surprised to see index heading towards 12400 – 12500, which coincides with key Fibonacci ratios. On the lower side, 12000 followed by 11900 are now likely to provide good support for the market. Traders are advised not to remain skeptical as the recent rally has been vertical in nature and looks a bit overbought. In such a strong trend, market generally tends to give gravity defying moves and hence, one should refrain from taking contradictory bets with a positional view. Rather use declines to go long and keep focusing on potential stocks which are likely to participate in the probable rally