NEXT WEEK NIFTY PREDICTION & CHARTS 27 AUG TO 31 AUG 18

WEEKLY RESISTANCE FOR NIFTY:11900,11950,12000

 PIVOT POINT: 11750

WEEKLY SUPPORT FOR NIFTY :  11700,11650,11600

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 11845,11885,11925

PIVOT POINT:11725

DAILY SUPPORT FOR NIFTY :  11700,11675,11650

DAILY CHART FOR NIFTY

It was the typical kind of week when index looks to consolidate after travelling some fair distance in a quick succession. Before anyone could realized, our markets are at new highs and for Nifty yet another milestone has been conquered above 11800. This is certainly a remarkable achievement if compared with the recent uncertainty in the global market. In the past week nifty has opened with a decent upside gap and then just took it forward to hasten towards yet another milestone of 11700.  

NIFTY: A STRONG SUPPORT WILL BE @ 10675; STRONG RESISTANCE LEVEL SEEN @10925

Now, if we look at the further route map, we are not seeing any obstacle before 11900, which is the 161% reciprocal retracement of the previous down move. So no brainer, we would stick to our recent optimistic stance without thinking too much about the few overbought indicators. The encouraging sign of any rally is if we see base shifting higher after every uptick, traders get know where they can place their exit strategy and this has been the characteristic of this ongoing move. For the coming session, 11700 followed by 11650 would be seen as immediate support zone and on the upside, the psychological level of 11825 first and then 11900. Thursday’s & Friday’s  tail end correction was slightly depressing for traders; but, we must accept that in between we are likely to see such hiccups. With a positional view, it would be wise digest such moves and stay with the broader trend. For the coming session, in case of selling pressure, 11650 followed by 11600 would be seen immediate support level. Whereas on the upside, 11825 - 11875 has become the intraday resistance zone. We will stick to our recent buy on dips strategy which has worked well for us in last 3- 4 weeks. For the coming session, 11640 remains to be a key support; whereas 11720 - 11750 would be seen as immediate resistance. But with a slightly broader view, our target of 11900 still remains in sight.

TECHNICALLY SPEAKING.

The Relative Strength Index (RSI) on the daily chart is 69 and it has just moved below from a topping formation, which is bearish. It remained neutral to the price and showed no divergence. The daily MACD is bullish while it stayed above its signal line. On the candle, a spinning top occurred, which continued to show that the indecisive approach of the participants. Overall, there is no second doubts over the present bull trend remaining intact. In fact, the refusal of the market to correct is a show of internal strength. However, given the overextended structure on the charts, there are still some more room for consolidation. We may see the market consolidating with the levels of 11700  acting as immediate technical resistance. Near these levels, the market may continue to remain vulnerable to profit taking, but the downsides, if any, are likely to remain limited. We recommend refraining from creating any major exposures on either sides unless the consolidation phase is seen ending. While remaining light on exposures, cautious approach is advised for the next week.