NEXT WEEK NIFTY PREDICTION & CHARTS 21 JAN TO 25 JAN 2019

WEEKLY RESISTANCE FOR NIFTY: 11000, 11100, 11200

 PIVOT POINT: 10850

WEEKLY SUPPORT FOR NIFTY :  10800,10700,10600

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 10975, 11025, 11075

PIVOT POINT: 10900

DAILY SUPPORT FOR NIFTY:  10875, 10825, 10775

Bulls were the winner of this week race. Nifty closed the week above 10900 mark. Trading for the week began on a flat note despite weak cues from the global peers. However, this subdued opening was merely a formality as we saw index taking a nosedive right from the word go and within no time we were well off the opening point. Although, index remained under pressure for the major part of the day, there was some modest recovery seen during last hour to trim some portion of losses.  Tuesday was undoubtedly the best day so far of the new calendar year. Firstly, we had a good trended move throughout the day and importantly, we finally broke out from the recent congestion zone in the upward direction. Since last few days, traders’ fraternity across the globe was keeping a close eye on important development with respect to the BREXIT. However, it turned out be a nonevent as we saw no major reaction on the global front. Wednesday morning, our markets opened on a flat note and then consolidated in a slender range throughout the day to eventually conclude around the opening point with negligible gains. Undoubtedly, no one would have expected such a lethargic day of trade, especially after Tuesday’s massive bump up to surpass key near term hurdles. Since there was no movement during the day, the chart structure remains the same.  In last couple of days, US markets have once again started marching northwards and in-line with this, on Thursday market opened higher after Wednesday’s quiet day of trade. Subsequently, index consolidated for a while; however post the mid-session, we saw aggravated profit taking across the board. At one point, things did not look good but fortunately for us, strong buying emerged at lower levels to pull the index back above the 10900 mark to eventually conclude with negligible gains.

NIFTY: A STRONG SUPPORT WILL BE @ 10750; STRONG RESISTANCE LEVEL SEEN @11200

Market always keeps us on toes and this week, the kind of swings we had on both sides, is the perfect example of it. At the end, we can easily say we are in a relatively safer zone now and weekly dip was merely a pullback towards the previous hurdles of 10850 – 10750. At present, the weekly chart gives us a better view as we can see perfect characteristics of a pullback move after a breakout. We continue to remain upbeat and expect the Nifty to head towards the next junction of 10970 first and then to test 11150. On the flipside, 10830 followed by 10720 now becomes a key support zone.

TECHNICALLY SPEAKING.

Technically speaking, the ‘Bullish Diamond’ pattern has now been activated and therefore, we expect the fresh leg of the rally to commence now. Unless there is some unfavorable development from the global markets, we expect the Nifty to head towards 10970 and then to test 11150. On the flipside, 10820 followed by 10777 are now likely to act as strong supports. We can term it as a breather after a confirmation of ‘Bullish diamond’ pattern. We reiterate that, the Nifty is likely to head towards the next junction of 10970 first and then to test 11150. On the flipside, 10820 followed by 10777 remain to be strong supports. The entire week was boredom for the traders’ fraternity .Market participants were keenly awaiting a decisive breakout from 10975; but every attempt (on both sides) eventually turned unsuccessful. Technically speaking, prices have been vacillating within the boundaries of a ‘Triangle’ as well as the ‘Diamond’ pattern and we are very close to the apex point.  With reference to intra-week articles, when prices approach the apex point, we tend to see breakout in either direction and thereby would widen the trading range as well.  As a trader, one must keep a close eye on two key levels i.e. 10995 on the higher side and 10750 on the downside. Considering the overall development in the broader market as well as the heavyweight banking basket, our inclination is more on the positive side. A move beyond the higher end of 10995 would unfold the next leg of the rally towards 11050 – 11100 levels. However, in case of a breach below 10750, it would certainly not bode well for the bulls. In such scenarios, one should wait for a confirmation to place aggressive bets.  At close, the daily strength indicator RSI and the momentum indicator Stochastic both were in a bullish mode.