NEXT WEEK NIFTY PREDICTION & CHARTS 12 NOV TO 16 NOV 2018

WEEKLY RESISTANCE FOR NIFTY:10700,10800,10900

 PIVOT POINT: 10550

WEEKLY SUPPORT FOR NIFTY :  10500,10400,10300

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 10700,10750,10800

PIVOT POINT:10600

DAILY SUPPORT FOR NIFTY :  10550,10500,10450

DAILY CHART FOR NIFTY

Diwali week brought back some joy in the traders’ / Investors’ fraternity. Few macro factors like Crude Oil correcting from higher levels as well domestic currency softening led to this much awaited hope rally. There were couple of tentative attempts seen from the markets; but eventually strong buying momentum lifted index significantly higher from last week’s low. During the week, barring muhurat trading day, there has been no major action seen in the Nifty.  Nifty opened on a sluggish note owing to nervous cues from the Asian bourses. Index remained in a bit of pressure for the major part of the day. However, late recovery post the SBI earning resulted into trimming of some portion of losses and in the process, Nifty eventually managed to defend the 10500 mark on a closing basis. Monday’s corrective move can be interpreted as a breather or pull back towards the important support zone of 10480 - 10440. Tuesday’s session was quite similar to Monday’s trading action. Index remained in a slender range with no real momentum in the Nifty ahead of Diwali festival. However, on the auspicious day of Laxmi Pujan on Wednesday, Nifty opened higher with a decent gap and eventually closed tad below the 10600 mark. Thursday Market was closed on accounts of Diwali. Friday nifty was trading slightly lower tracking as the Federal Reserve looked set to deliver another interest rate hike next month, paring gains made earlier this week after US midterm elections triggered a global equities rally. Nifty closed the week above 10600 mark.

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

Now, the nifty future have to hold above the 10600 -10650 zone to extend its upward move towards the 10700-10800 level. It has been making higher highs and higher lows for last four weeks and a hold above 10650 level would be important for the index to move higher.  Minor support for the index lies in the zone of 10600  to 10550. Support for the index lies in the zone of 10500 to 10450. If the index manages to close below these levels then the index can drift to the levels of 10400  to 10350 where long term moving averages levels are lying. Resistance for the index lies in the zone of 10700 to 10800. If the index manages to close above these levels then the index can move to the levels of 10850 to 10900.

Broad range for the week is seen from 10350 on downside & 10750 on upside.

TECHNICALLY SPEAKING.

This week, we saw selling momentum getting exhausted and hence, some reversal was needed for market to trigger this short covering move. We got this reversal in the form of nifty surpassing 10650 and since then there has been no stopping. Now with Friday’s move, we are well above daily 20-EMA and hence, we expect continuation of this relief move towards 10700-10800 in days to come. It’s advisable to keep booking profits if Nifty reached this mentioned resistance zone. This is seen as a crucial hurdle because we can see multiple technical factors converging around it. Firstly, the downside gap area which coincides with daily ‘200-SMA’ as well as ‘89 EMA’. Hence, one should stay light around it and wait for further developments to happen on charts. On the lower side, 10450 followed by 10380 are seen as strong support levels for the forthcoming week.  As far as index is concerned, we may call it a breather and hence, going ahead, all eyes would be on two key intraday supports i.e. 10450 and 10380. As of now, we believe that these levels would be defended and any dip towards it is likely to get bought into. On the flip side,10700 would be seen as crucial hurdle and a sustainable move beyond this would unfold further room to test 10750 – 10800 levels in days to come. At this juncture, traders are advised to keep a note of all above mentioned levels.

HOW TO TRADE NIFTY FUTURE IN UPTREND BREAKOUT ABOVE 10629?

if nifty cross 10655 then you buy future at 10655 with 10600 put option buy in the range 155 to 160 stop loss 10510 (10600 put expected price 225). If it achieves the 1st target 10699 during the day or any point during the week revise your stop loss to 10656 and hold the trade. If the 2nd target 10730 achieved revise the stop loss to 10677 and hold the trade. If the 3rd target 10749 achieved, then trail or revise the stop loss to 10730. Continue this till last target is not achieved or trailing stop loss is not triggered. If trailing stop loss trigger, then close the hedging option position also.

HOW TO TRADE NIFTY FUTURE IN DOWN TREND BREAKOUT BELOW 10541?

if nifty fall below 10540 then you sell at 10540 with 10550 call option buy in the range 135 to 155 stop loss 10650 (10550 call expected price 230) If it achieves the 1st target 10699 during the day or any point during the week revise your stop loss to 10650 and hold the trade. If the 2nd target 10730 achieved revise the stop loss to 10656 and hold the trade. If the 3rd target 10749 achieved, then trail or revise the stop loss to 10730. Continue this till last target is not achieved or trailing stop loss is not triggered. If trailing stop loss trigger, then close the hedging option position also.