NEXT WEEK NIFTY PREDICTION & CHARTS 19 NOV TO 22 NOV 2018

WEEKLY RESISTANCE FOR NIFTY: 10700, 10800, 10900

 PIVOT POINT: 10600

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

If ends well mean all is well. Continuing its rising streak for the second day, domestic stock markets ended Friday's session on a positive note. The Nifty rose 65 points to settle at 10682. The indices were boosted by a surge in top financial and energy stocks amid continued foreign fund inflows and strengthening rupee.  After Diwali, our markets kick started proceedings for the week on a subdued note. On Monday The overall bias during the initial hour was slightly on the positive side. However, unexpectedly, markets started to feel strong selling pressure at higher level and as a result; index nosedived throughout the second half to eventually close tad below the 10500 mark. On Monday’s disappointing session was followed by a yet another sluggish start on Tuesday, owing to some uncertainty across the globe. Index remained under bit of pressure in the first half; but the second half turned out to be complete opposite of what we saw on Monday. The Nifty took a U-turn from lower levels and then due to sustained buying throughout, eventually managed to regain Monday’s damage to close at the highest point of the day. Wednesday had a gap up opening mainly on the back of overnight extended fall in Crude Oil. However, markets stuck at higher levels and after some consolidation, our markets shaved off all early morning gains. Eventually, Nifty went on to close convincingly below the 10600 mark. On Thursday markets opened flat in the midst of mixed global cues. Subsequently, index consolidated during the first half; but some momentum was seen during the latter half. Index made several attempts to surpass its recent ceiling of 10650. However, once again unable to do so and eventually closed tad above 10600.

NIFTY: A STRONG SUPPORT WILL BE @ 10450; STRONG RESISTANCE LEVEL SEEN @10800

At this juncture, we believe that the index is heading towards its cluster of resistance, which is in the zone of 10750 - 10800. As of now, one should trade with a positive bias but at the same, it’s better to start lightening up positions once index reaches this strong hurdle and then wait for further developments to happen on charts. On the lower side, 10540 - 10500 are seen as immediate supports for the index. Technically Nifty is placed around the upper end of the resistance zone of 10650-10700. The Nifty index has also seen a couple of throwbacks from levels around 10680-10635 during the last week, despite ending in the positive terrain. This could prove to be the immediate near term hurdle for the index crossing which the Nifty can accelerate its up move towards 10800-10850 in the days to come. , we recommend traders to continue trading in a disciplined manner and exit leveraged positions if the immediate support zone mentioned above is not held on a sustainable basis.

TECHNICALLY SPEAKING.

The Relative Strength Index (RSI) on the weekly  chart stood at 47.95 and it has marked a fresh 14-period high, which is bullish. It showed no divergence against the price. The daily MACD remained bullish while trading above its signal line. No significant formations were seen on the candles. If we look at the pattern analysis, after suffering a sharp corrective decline, Nifty has formed a small falling channel while attempting to form a base and pullback. This pullback had a stiff resistance in form of falling trend line and the 200-DMA, which remained in the 140-point range. This zone is likely to cause turbulence and instill some volatility in the market.
We expect some volatility to get ingrained at higher levels. Despite up moves, there are chances Nifty might get pushed into some consolidation at higher levels. We recommend approaching next week trade with great caution and protect gains at higher levels. For next week, expect a positive or a stable start of the week. Though the week will begin with a  gap and the stocks might align itself with the global markets, the zone of 10,650-10,750 will remain critically important, as Nifty will approach its stiff resistance area for the near term. Supports may come in at 10550 and 10400 levels. 

HOW TO TRADE NIFTY FUTURE IN UPTREND BREAKOUT ABOVE 10650?

if nifty cross 10650 then you buy future at 10655 with 10600 put option buy in the range 155 to 160 stop loss 10514 (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 10655 and hold the trade. If the 2nd target 10730 achieved revise the stop loss to 10655 and hold the trade. If the 3rd target 10750 achieved, then trail or revise the stop loss to 10655. 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 10540?

if nifty fall below 10540 then you sell at 10540 with 10600 call option buy in the range 135 to 155 stop loss 10656 (10550 call expected price 230) If it achieves the 1st target 10500 during the day or any point during the week revise your stop loss to 10540 and hold the trade. If the 2nd target 10450 achieved revise the stop loss to 10540 and hold the trade. If the 3rd target 10400 achieved, then trail or revise the stop loss to 10540. 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.