NEXT WEEK NIFTY PREDICTION & CHARTS 22 OCT TO 26 OCT 2018

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WEEKLY RESISTANCE FOR NIFTY: 10550, 10750, 10850

 PIVOT POINT: 10300

WEEKLY SUPPORT FOR NIFTY:  10200, 10100, 10000

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 10400, 10550, 10750

PIVOT POINT: 10300

DAILY SUPPORT FOR NIFTY:  10250, 10200, 10150

DAILY CHART FOR NIFTY

During the week, our markets defending the key support level of 10200 on a closing basis was certainly a remarkable achievement. It was clearly an indication that the sellers have exhausted and they do not have further strength to react to the global hiccups. Hence, we had a gap up opening on the concluding day of the week with a good bump up and in fact, the momentum accelerated as the day progressed. In the course of action, we are back to Wednesday’s highs by ending the week on a cheerful note. Finally, the recent losing streak came to an end as we not only managed to defend the critical support level of 10200 but also ended the week with a good hope of further recovery in the forthcoming week. Last week, we had highlighted few notable observations and all those key technical evidences have proved their significance.

Trading for the week began with a decent bump up but this early morning lead immediately got sold into. Index came off sharply during the midst of the day towards the 10400 mark. This important intraday junction provided rock solid support for our market and as a result, we witnessed a v-shaped recovery in the latter half to reclaim the psychological figure of 10500 on a closing basis. Tuesday had a positive opening with marginal upside gap after Monday’s good tail end buying. Subsequently, we saw the index adding further gains in the initial hour. However, Nifty struggled around 10600 and hence, we saw a decent dip during the midst of the day. Fortunately for traders, this intraday decline eventually got bought into and as a result, the Nifty managed to close well inside the positive territory. Wednesday’s session opened with a good bump up of more than 100 points, owing to massive overnight rally in US markets on Tuesday. However, this lead did not last too long due to strong profit booking at higher levels. In fact, things became worse as index pared down all gains and eventually ended the session with a cut of over a percent to conclude tad above the 10450 mark. Thursday market was shut on accounts of Dassehra. Week has ended sharply lower amid weak global cues. Reliance earnings, NBFC crisis and H1-B visa issue dented investor’s sentiment. The Sensex ended the week down 463 points at 34315 and the Nifty slipped 149 points to 10303.

NIFTY: A STRONG SUPPORT WILL BE @ 10200; STRONG RESISTANCE LEVEL SEEN @10800

Next week is the expiry week for F&O Oct series , As long as it holds below 10300 , the Nifty50 may continue to extend weakness towards 10200 and the psychologically important 10,000 levels, while on the upside, the medium-term hurdle is shifting from 10650  to 10750 levels. As long as Nifty doesn’t surpass any immediate hurdle, the overall weak structure could limit the upside for the market.  Broad range for the week is seen from 10200 on downside & 10800 on upside.

TECHNICALLY SPEAKING.

Despite unfavorable global cues, our markets showed tremendous resilience after correcting 78.6% of the entire up move from 10250 to 10700. Also, this key support zone coincided with the weekly 89 EMA and thus, the relief was very much on cards. Now, the question is, are we done with the correction or this is just a temporary relief rally? In our sense, it would be too early to judge this as a completion of the corrective phase. But, one thing we are convinced with is, we are heading for further bounce back in the coming week as it will be the F&O Oct expiry week. As far as levels are concerned, we expect the natural extension to be around 10700 – 10900 and then one need to reassess the situation after meeting these probable junctions. On the downside, 10200 followed by 10000 would be seen as key support levels. Momentum traders are advised to ride this relief move with strict stop losses. It would be a prudent strategy to focus on midcap universe, which has taken a u-turn from important supports and is now likely to witness further relief. But having said that; we would like to give a piece of advice to momentum traders, it’s better to adopt a stock centric approach and look to take timely profits off the table.