NEXT WEEK NIFTY PREDICTION & CHARTS 4 FEB TO 8 FEB 2019

WEEKLY RESISTANCE FOR NIFTY: 10930, 11000, 11100

 PIVOT POINT: 10800

WEEKLY SUPPORT FOR NIFTY:  10700, 10600, 10500

WEEKLY CHART FOR NIFTY 

DAILY RESISTANCE FOR NIFTY: 10930, 10975, 11050

PIVOT POINT: 10850

DAILY SUPPORT FOR NIFTY:  10800, 10750, 10700

DAILY CHART FOR NIFTY 

This week was certainly an astounding week of trade for our markets. Who would have thought at the starting on week that the session is going to come with loads of surprises? In-line with Nifty, we started marginally higher at 10700 and then remained a bit sluggish in the initial day. But post this; all of a sudden strong buying emerged in the market, which accelerated as the week progressed. Eventually, this spectacular week ended with whopping gains of 300 points to bring back wider smile in traders’ fraternity. The week has ended higher but off day's high with Nifty ended near 10900 level post Interim Budget presented by Finance Minister Piyush Goyal. The Modi government has seemingly once again managed to defy the convention by pulling off a Budget, which seems more in the nature of a full budget rather than an interim budget.
The week has started on positive note. However soon index resumed its corrective mode and thereafter, continued its southward move to sneak below key support levels. Some respite was seen during the last hour of the trade but eventually index closed convincingly below the 10700 mark on Monday.   Tuesday had a sluggish start as indicated by the Nifty early in the morning. During the first half, there were couple of attempts made to inch towards the 10700 mark; however due to strong selling at higher levels, these attempts got sold into. In fact, post the midsession, the selling aggravated to eventually push the Nifty below 10600. Fortunately for us, an emergence of strong demand at lower levels during the penultimate hour resulted into a v-shaped recovery to reclaim 10650 on a closing basis. Wednesday's volatile trading session has ended on negative note on account of the Union Budget 2019 & F&O expiry on January series. Sensex ends flat at 35591 ahead, Nifty settled at 10652. The Nifty opened higher at 10702 and touched an intraday high of 10710, but wiped out gains in late morning deals to hit day's low of 10612 and remained rangebound for rest of the session. Traders also await Federal Reserve's two-day meeting outcome on Wednesday night.  Thursday Just a day before the Budget presentation, markets logged strong gains the Nifty closed 179 points higher to settle at 10831.

NIFTY: A STRONG SUPPORT WILL BE @ 10700; STRONG RESISTANCE LEVEL SEEN @10950

Participants must have enjoyed a spectacular ride of this week. Things have started looking quite encouraging. In the previous week, we had mentioned if Nifty manages to stay beyond 10700, we could see an extension towards 10930 – 10985 levels. Fortunately for us, this turned out to be a reality and there was complete gush seen throughout the broader market as if there is no tomorrow. For the coming session, we would advise staying light as we may see higher volatility on account of RBI policy on February 7. This hope rally must have come out of some positive expectation. If any announcement comes in-line with expectations, we may see this rally getting extended towards 11000 – 11200 or beyond also. On the flipside, 10750 followed by 10600 are likely to be seen as immediate supports.

 TECHNICALLY SPEAKING.

From the technical point of view, Nifty has halted near the 200-DMA, which is at 10950. This level cannot be disregarded, and it remained an important resistance level on a closing basis. Despite all likelihood of nifty oscillating in a volatile way, the zone of 10950 -11050 continues to remain a major resistance zone. Unless these levels are taken out, meaningful rally will not begin.  The RSI on the daily & weekly chart was neutral and showed no divergence against the price. The daily & weekly MACD remained bearish while trading below its signal line.  We strongly recommend continuing with a stock-specific approach and vigilantly protect profits at higher levels. The up moves, if any, should not be chased blindly unless they result into a move that takes the market beyond its key resistance zone. A cautious approach is advised for the next week.