NIFTY WEEKLY PREDICTION & CHART FOR 16 TO 20 JULY 18

WEEKLY RESISTANCE FOR NIFTY FUTURE: 11075, 11150, 11125

 PIVOT POINT: 11000

WEEKLY SUPPORT FOR NIFTY FUTURE:  10950, 10900, 10825

WEEKLY CHART FOR NIFTY FUTURE

DAILY RESISTANCE FOR NIFTY FUTURE: 11070, 11100, 11125

PIVOT POINT: 11000

DAILY SUPPORT FOR NIFTY FUTURE:  10975,10950,10925

DAILY CHART FOR NIFTY FUTURE

This was clearly an eventful and action packed week for our market. After last 4 week of slumber finally bulls come back with a bang. However, this week turned out to be a nightmare for the bears and especially for those who created fresh shorts positions. Undoubtedly, many traders left clueless with the kind of bounce back move we witnessed in the broader market. The Nifty eventually went on to reclaim the 11000 mark on a closing basis. Throughout this week, we witnessed a series of gap up openings. Wednesday’s sheer outperformance as compared to global peers was followed by a cheerful opening beyond the 11000 mark. The global set up was conducive to provide some impetus to kick start the week on a cheerful note. The global peers have played their parts and hence, the set up was just perfect for Sensex & Nifty to kick for new all time high. It was a week of consolidation amidst global uncertainty; but we witnessed decent traction outside the index.  Best quarter for India Inc in 3 years, best sequential growth for TCS in 4 years &Updated World Bank figures for 2017, i.e. India has become the world's sixth largest economy, muscling past France. India's gross domestic product (GDP) amounted to $2.597 trillion at the end of last year; against $2.582 trillion for France was the key factor that has moved the market in this past week.
Nifty future has opened the week at 10812 made a high of 10069 and low of 10801 & finally closed the week at 11020, total 268 points nifty future has moved in this week.
NIFTY: A STRONG SUPPORT WILL BE @ 10900; STRONG RESISTANCE LEVEL SEEN @11200

Now, the question is, are we done with the correction or this is just a relief rally? Honestly speaking, it is very difficult to make a comment at this juncture as the index closed precisely in the corridor of uncertainty. As a pessimist, we would interpret this as a bounce back
towards the breakdown point which coincides with the daily ’20 EMA’ as well as the ‘Rising Trend line’ resistance. On the other hand, the way some of the individual stocks recovered during the session is a sign of strength. There are times when market confuses us and plays with our emotions; this is clearly one of those instances. Hence, to make it a bit easier, we would let market give further indications. Going ahead, the nifty future has to hold above the 11000 level to extend its upward move towards the 11100-11200 level. 11050 level would be important for the index to move higher. Minor support for the index lies in the zone of 10975 to 10935. Support for the index lies in the zone of 10900 to 10875. If the index manages to close below these levels then the index can drift to the levels of 10850 to 10800 where long term moving averages levels are lying. Resistance for the index lies in the zone of 11075 to 11100. If the index manages to close above these levels then the index can move to the levels of 11200 to 11250.

Broad range for the week is seen from 11200 to the upside & 10900 towards the downside.

TECHNICALLY SPEAKING.

The recent optimism has been very much on expected lines and importantly, the kind of profit booking that we saw this week; it’s an indication that we may have a smoother ride going ahead. Since, we expect some consolidation in benchmarks with a positive bias; traders are advised to focus on individual pockets that are poised for decent moves. This optimism remains valid as long as index maintains its position above the 11000 mark. For the coming week, 11100 followed by 11200 would be seen as resistances for next week; whereas on the downside, yesterday’s gap area of 10950 – 10850 is likely to act as intraday support zone. The ideal strategy would be to avoid aggressive bets on index as we may expect some choppy moves going ahead and hence, one needs to be cautious & stock specific to get better trading opportunities.