WEEKLY
RESISTANCE FOR NIFTY: 11850, 12000, 11200
DAILY RESISTANCE FOR NIFTY: 11800, 11900, 112000
If end well all
well. Late buying helped nifty to close the first day of May
series near day's high level with Nifty finished above 11750 mark. On Monday
a sudden spike in crude oil prices spooked traders’ fraternity across the globe
and we being the most sensitive economy had a massive impact of the same. Our
markets began marginally lower but within a blink of an eye, we were off more
than 70 – 80 points to sneak below the 11700 mark. It was followed by some
consolidation till the mid session; but as the second half underway, the selling
intensified across the broader market and hence, yet another bout of sell off
eventually dragged the Nifty below 11600 on a closing basis. Tuesday we had a
flat to positive opening as indicated by the Nifty early in the morning. This
was followed by a gradual up move with lack of momentum for the major part of
the day. However, during the penultimate hour, all of a sudden, bundle of
heavyweight constituents started facing severe selling pressure and as a
result, the Nifty dropped inside the negative territory within no time.
Eventually, we ended the session well below 11600 by losing nearly two tenths
of a percent. Tuesday’s weak closing was followed by a gap up opening on Wednesday
with a very small margin. There were no major triggers on the domestic as well
as global front and hence, we slipped into a consolidation thereafter. The
intraday range shrunk considerably, resulting into a lack of momentum. However,
from nowhere, there was sudden gush seen in the market at the stroke of the
penultimate hour and what we witnessed thereafter, was really a jaw dropping
development for our market. In last one and half hours, Nifty not only elevated
from the key support levels; but also managed to reclaim the 11700 mark with
some authority. Wednesday’s spectacular recovery was followed by a flat opening
on Thursday with mildly positive bias. The index then continued its northward
trajectory towards the 11800 mark. However, we witnessed massive profit taking
at higher levels and hence, we were well off from the kissing distance of
11800. This sell off aggravated during the last hour of the day, which led index
convincingly below 11700 within a blink of an eye. Eventually, this volatile
session ended with a loss of over seven tenths of a percent.
PIVOT POINT: 11700
WEEKLY SUPPORT FOR
NIFTY: 11600, 11500, 11400
WEEKLY CHART FOR NIFTY
DAILY RESISTANCE FOR NIFTY: 11800, 11900, 112000
PIVOT POINT: 11650
DAILY SUPPORT FOR NIFTY: 11550, 11450,
11350
DAILY CHART FOR NIFTY
If end well all
well. Late buying helped nifty to close the first day of May
series near day's high level with Nifty finished above 11750 mark. On Monday
a sudden spike in crude oil prices spooked traders’ fraternity across the globe
and we being the most sensitive economy had a massive impact of the same. Our
markets began marginally lower but within a blink of an eye, we were off more
than 70 – 80 points to sneak below the 11700 mark. It was followed by some
consolidation till the mid session; but as the second half underway, the selling
intensified across the broader market and hence, yet another bout of sell off
eventually dragged the Nifty below 11600 on a closing basis. Tuesday we had a
flat to positive opening as indicated by the Nifty early in the morning. This
was followed by a gradual up move with lack of momentum for the major part of
the day. However, during the penultimate hour, all of a sudden, bundle of
heavyweight constituents started facing severe selling pressure and as a
result, the Nifty dropped inside the negative territory within no time.
Eventually, we ended the session well below 11600 by losing nearly two tenths
of a percent. Tuesday’s weak closing was followed by a gap up opening on Wednesday
with a very small margin. There were no major triggers on the domestic as well
as global front and hence, we slipped into a consolidation thereafter. The
intraday range shrunk considerably, resulting into a lack of momentum. However,
from nowhere, there was sudden gush seen in the market at the stroke of the
penultimate hour and what we witnessed thereafter, was really a jaw dropping
development for our market. In last one and half hours, Nifty not only elevated
from the key support levels; but also managed to reclaim the 11700 mark with
some authority. Wednesday’s spectacular recovery was followed by a flat opening
on Thursday with mildly positive bias. The index then continued its northward
trajectory towards the 11800 mark. However, we witnessed massive profit taking
at higher levels and hence, we were well off from the kissing distance of
11800. This sell off aggravated during the last hour of the day, which led index
convincingly below 11700 within a blink of an eye. Eventually, this volatile
session ended with a loss of over seven tenths of a percent.
NIFTY VIEW FOR COMING WEEK 15 APRIL TO 19 APRIL 2019
We had an ideal start of May series and very much on
expected lines, index continued its march towards 11800. However, first
technical and then derivative factor played out strongly in the market today,
leading to a strong intraday correction. Technically, if we look at the hourly
chart, Nifty faced resistance precisely at the 78.6% Fibonacci retracement of
the recent down move from 11856 to 11564. Adding to this, there was copy book
‘Shooting star’ was formed around this hurdle and hence, it weighed down
heavily to initiate the profit booking mode. And then the expiry factor towards
the fag end of the session, which dragged index significantly lower below its
key intraday support. Honestly speaking, we did not expect this kind of bizarre
session especially after Thursday remarkable rally. Now as far as levels are
concerned, 11550 followed by 11500 would still be seen as major support zone.
We reiterate that, till the time we are above 11550, there is no reason to
worry for.
TECHNICALLY SPEAKING.
Although, our fingers were crossed since last couple of
days, hoping 11549 not to get violated, we were a bit surprised with such
velocity that. Last week nifty was literally flying as if there is no tomorrow.
Such surprises are always pleasant for the market participants and probably
they would never complain to have such every day. Now, going back to technical
observations, 11550 has once again proved its significance, in fact the respect
has risen and hence, going ahead, it would now be treated as a major sacrosanct
support level in the near term. The kind of broad based rally we have seen in
the may series, the stage is all set to see may series at record highs.
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