NEXT WEEK NIFTY PREDICTION & CHARTS 31 DEC TO 4 JAN 2019

What a spectacular trading week it was for our markets. It feels like nifty was dancing to the global tunes and we feel it'll continue in the near future, in absence of any major event on local front.   Initially, we saw index starting the week marginally lower and then extending the weakness to sneak below the 10700 mark. However, from the very next day, there was strong buying witnessed at lower levels which aggravated to clock handsome gains of over six tenths of a percent to reclaim the 10800 mark with some authority. On November expiry day nifty traded on bullish note & ended the session with decent gains thanks to favorable local cues and supportive global markets. the nifty surged 94 points to 10824. The market started off January series on a strong note with the Nifty closing above 10850 levels amid thin trade, extending gains for third consecutive session on Friday.

NIFTY: A STRONG SUPPORT WILL BE @ 10700; STRONG RESISTANCE LEVEL SEEN @11000

The index formed bullish candle on the daily charts and 'Hammer' kind of pattern on the weekly scale. It closed a percent higher during the week. A Hammer which is a bullish reversal pattern is formed after a decline while a Hanging Man is a bearish reversal pattern. A Hammer consists of no upper shadow, a small body, and long lower shadow. The long lower shadow of the Hammer signifies that it tested its support where demand was located and then bounced back. After the sharp run in last three sessions, the market is expected to consolidate in coming session, but if its upmove continues then the Nifty could move towards its psychological 11,000 levels. Till the index holds above 10700-10750 zones it can extend it move towards crucial hurdle of 10975 levels while on the downside support exists at 10750 levels.

TECHNICALLY SPEAKING.

The structure remains bullish as long as Nifty remains above 10800 – 10700 on a closing basis. However the velocity at which our markets corrected today, it looks quite intimidating. Hence, it would be important to see how index behaves in first half of the week around this mentioned support zone. On the upside, if it has to regain strength, index needs to surpass and stay beyond the 10950 mark. Considering the higher volatility, traders are advised to remain light on positions.. A prudent strategy in such kind of scenario is to follow strict stop losses for existing positions and better to avoid taking undue risks till the time volatility subsides.