NEXT WEEK NIFTY PREDICTION & CHARTS 5 MARCH TO 8 MARCH 19

WEEKLY RESISTANCE FOR NIFTY: 10850, 10950, 11050

 PIVOT POINT: 10750

WEEKLY SUPPORT FOR NIFTY:  10700, 10600, 10500

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 10850, 10925, 11000

PIVOT POINT: 10800

DAILY SUPPORT FOR NIFTY:  10750, 10700, 10650

DAILY CHART FOR NIFTY 

Trading for the week began marginally higher, owing to cheerful mood across the globe. Subsequently, we saw mild profit booking in the initial hour, but post this, index resumed its upwards trajectory and in fact, the momentum accelerated in the latter half to hasten towards the 10900 mark. Eventually, index concluded the Monday’s session 20 point short of the important junction by adding eight tenths of a percent to the bulls’ kitty. Tuesday had a gap down opening with a fair margin on the back of some early morning geopolitical concerns. In fact, this weakness extended in the initial hours to sneak below the 10750 mark. Fortunately, this decline eventually got bought into and we had a smart recovery post the initial correction to eventually conclude the volatile day by losing four tenths of a percent.  Wednesday’s session started with a decent gap up opening around the previous session high and these gains were extended in the first hour to mark intraday high of 10939. Everything looked 'Hunky Dory' during the first few hours; however, further development on geopolitical front spooked the sentiment; leading into a sharp decline to post a low of 10751. Eventually index managed to reclaim the 10800 mark, courtesy to modest recovery in latter half. Thursday ambiguity continues in the market on the back of geopolitical concerns on both domestic as well as global front. We had a gap up opening; but it was merely a formality. Index immediately gave up this early morning lead and then slipped into a consolidation mode. Last couple of hours of trade saw some volatile swings, which has more to do with the derivative expiry. Eventually, Nifty closed with a nominal loss tad below the 10800 mark.  Friday markets remained firm in late trade, with Sensex up around 200 points while Nifty was above 10,850. 

NIFTY: A STRONG SUPPORT WILL BE @ 10750; STRONG RESISTANCE LEVEL SEEN @11000

We are seeing no clear price action in nifty in this past week and it is very obvious considering the recent developments on the geopolitical front. We can see a trading range of 200 points i.e. 10930 – 10730 and only a sustainable breakout in either direction would lead to some trended move. Till then one should avoid trading aggressively.  We have seen a couple of volatile sessions and technically it is difficult to catch the next move in such volatile times. The sigh of relief for the bulls, however, is that the impact on the downside has not been much and there's no broad-based selling. As far as levels are concerned, 10730 will be a crucial support; whereas resistance is placed around 10900-10950 levels.

 TECHNICALLY SPEAKING.

Let’s dig into a bit of technical now. Tuesday’s session was quite crucial for our market. Despite taking a nosedive in the penultimate hour, our markets somehow managed to defend the recent swing low of 10762. The daily chart depicted an ‘Inverted Hammer’, which eventually got converted into a ‘Morning Star’ pattern due to a price development on the following day. Since, there was an occurrence of a ‘Positive divergence’ on hourly chart ; markets had all the reason to give a decent bounce back. This is what we saw in the remaining part of the week. Now going ahead, as long as 10750 is not broken, traders should look to trade on the positive side. Before this, 10700 – 10650 would be seen as immediate supports. On the flipside, ‘200-day SMA’ level of 10895 would be seen the level to watch out for. A move beyond this would trigger a decent up move towards 10925 – 11000 levels.  As we had anticipated, all constituents within this high beta pocket soared to a great extent.  All in all, set up looks good for the extended relief rally; but, considering recent moves, it’s better to take one step at a time.