NIFTY PREDICTION FOR NEXT WEEK 29 NOV TO 3 DEC 2021

FOR LIVE MARKET CALLS JOIN US ON WHATSAPP 9039542248

WEEKLY RESISTANCE FOR NIFTY: 17200, 17500, 17700

PIVOT POINT: 17000

WEEKLY SUPPORT FOR NIFTY:  16800, 16600, 16400

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 17100, 17200, 17300

PIVOT POINT: 17000

DAILY SUPPORT FOR NIFTY:  16900, 16800, 16700

DAILY CHART FOR NIFTY

The SGX Nifty was indicating a pleasant start for the week in line with cheerful global bourses. However we did not open with the same positivity and in fact gave up all gains in the initial trades itself. As the day progressed, the selling augmented across the broader market to break all intermediate supports one after another. During the final hour, market managed to minimize the damage; but still ended the session with nearly a couple of percent loss. After Monday’s sell off, our market started the day on a weak note as indicated by the SGX Nifty early in the morning. Things looked extremely bleak in the opening trades but fortunately the bears chose to take some breather after nearing the support zone of 17250 – 17200. In fact, as the day progressed, the overall recovery in the market gained some momentum to reclaim the 17500 mark. Tuesday’s smart recovery was followed by a decent opening on Wednesday in line with favorable global cues. After the initial tentativeness, market stabilized and went into a consolidation mode. We slowly and very gradually moved towards the 17600 mark around the mid-session. However all of a sudden market started to feel some heat as we witnessed strong selling pressure across the board to pull the Nifty back to 17400 in a flash, in fact for a moment we even slid towards 17350. Market ended on positive note on Thursday 25 November 2021 with Nifty finished the November F&O series above 17500 supported by the Reliance Industries and realty and pharma industries. At close, the Sensex was up 454 points at 58795, and the Nifty was up 121 points at 17536. Nervousness on the new variant of Corona virus and expectations of US increasing the pace of tapering has led to recent market weakness. This trend may take some time to recover as the WHO meeting on the new mutant variant impact and hospitalization rates in US and Europe will be watched by the market very closely. Benchmark indices were trading lower in the final hour of trading on November 26 with Nifty gave up the 17000 mark on Friday as the 50-stock index hit a low of 16985 before registering a small pullback.

NIFTY: A STRONG SUPPORT WILL BE @ 16500; STRONG RESISTANCE LEVEL SEEN @ 17500

Today’s pullback after the early scare in the first half, and the inability to push beyond 17200 in the second half, despite several and strong up waves, confirms that consolidation is in play, rather than a directional move. Favored view expects the same to continue in next week, without requiring to take a call on the chances of either 18k or 16k for now. During the next week, it would be critical for Nifty to float above 17450 to maintain potential for a 17500-800 move. Inability to do so could clear path for 16800.

TECHNICALLY SPEAKING

The lack of faster retracement of the last decline signifies weak pullback that makes us believe retest of recent low of 16985 cannot be ruled out. Over past 3 sessions index has retraced 38% of preceding four sessions decline (17200-16985). Since April 2020, there have been three major corrections (shown in adjoining chart) which measured average 10%. Buying in each of three corrections provided handsome returns for investors as index eventually scaled back to new highs. In current scenario, as Nifty has already corrected 8% from life highs of 18600 amid oversold placement of weekly stochastic (currently placed at 21), we expect markets to maintain this rhythm of arresting corrections within 9%. Thus, we expect Nifty to find strong buying demand in 16800-16500 zone. One should continue with a sell on rise strategy. Although we continue to remain bearish on the market, it would be difficult to take a call whether we would break the sacrosanct support of 16800 on Monday itself. Yes sooner or later it is likely to be breached to see Nifty retesting the 16000 mark. Before this, 16500 is to be considered as an intraday support.