NIFTY WEEKLY PREDICTION & CHARTS 15 APRIL TO 19 APRIL 2019

WEEKLY RESISTANCE FOR NIFTY: 11700, 11800, 11900

 PIVOT POINT: 11600

WEEKLY SUPPORT FOR NIFTY:  11500, 11400, 11300

WEEKLY CHART FOR NIFTY 

DAILY RESISTANCE FOR NIFTY: 11700, 11750, 11800

PIVOT POINT: 11630

DAILY SUPPORT FOR NIFTY:  11600, 11550, 11500

DAILY CHART FOR NIFTY 

The domestic stock markets broke out of the range-bound trading in afternoon trade ahead of the release of key The macroeconomic data and quarterly results of IT majors TCS and Infosys changed the market sentiments. The nifty closed the week above 11600 mark at 11,643.

Trading for the week kick started on a positive note slightly above 11700, very much in-line with other Asian peers. However, it looked like a fragile gap up opening and hence, markets started coming off immediately from opening trades. In fact, the selling aggravated as the day progressed and hence, we not only erased early morning gains but also went on to sneak well below key support levels by shedding more than 100 points from previous close. Fortunately, some buying emerged at lower levels which pulled the index to reclaim the 11600 mark on a closing basis. Tuesday Nifty opened flat as there was no major trigger on the global as well as domestic front. During the first half, index did not have any strength to climb higher and hence, we almost went back to previous day’s low. Fortunately, there was sudden buying interest seen at lower levels and hence, markets reversed before it breaks previous day’s low. In fact, as we were approaching the fag end of the session; the buying momentum accelerated across the broader market, leading Nifty to close at the highest point of the day by clocking over half a percent gains. Tuesday’s smart recovery was followed by a disappointing start on Wednesday mainly on the back of unfavorable cues from the global peers. During the first half, index made couple of valiant attempts to move towards the 11700 mark; but all those attempts turned unsuccessful. In fact, the selloff aggravated post the midsession to eventually sneak below 11600 on a closing basis. Thursday, our markets started on a muted note in the absence of major action from global cues. Subsequently, following the weakness of the previous session Index traded under pressure during the first half. Last few hours were however better as we saw index rebounding a bit after finding support on key levels to eventually end with minor gains tad below 11600.

NIFTY VIEW FOR COMING WEEK  15 APRIL TO 19 APRIL 2019

Markets are expected to remain volatile in the near term till investors get more clarity from the ongoing elections and high frequency data points. As far as direction is concerned, no brainer we are still in a strong uptrend. Yes, in between we may see hiccups; but one should not get intimidated by such declines. However, this certainly doesn’t change the trend; in fact, it should be considered as a healthy correction to see sustainable rally in the near term. We advise traders not to look for shorting opportunities, rather use dips to buy into some quality propositions. For the forthcoming week, 11700 – 11800 are the immediate levels to watch out for. It’s a matter of time, we would see index surpassing these levels and entering an uncharted territory. On the downside, 11500 followed by 11300 would now be seen as key support levels for the index.

 TECHNICALLY SPEAKING.

Let’s dig into a bit of technical now. Honestly speaking, looking at last week’s up move, we were expecting much better sessions this week. Unfortunately, it did not go the way we wanted to. On the higher side, the mentioned ‘Falling trend Line’ resistance of 11675 acted as a sturdy wall and hence a weak attempt to surpass this barrier was turned down. But since we are still in a consolidation range, we are now at the lower end of the range i.e. 11570 - 11500. With reference to our previous outlook, prices respected the key support of 11500 and avoided the extension of correction. Technically not much has changed as priced ended near the previous close with a small body candle. Going ahead, this support zone would be closely watched by the traders. A sustainable move below this would result into an extended correction; whereas, in our sense, we would probably be able to hold it and then move higher. On the flipside, the immediate resistance is now placed in the zone of 11740 – 11825 levels.  Traders are advised to carry on with the primary uptrend.