NIFTY WEEKLY PREDICTION & CHARTS 8 APRIL TO 12 APRIL 2019

WEEKLY RESISTANCE FOR NIFTY: 11750, 11850, 11950

 PIVOT POINT: 11500

WEEKLY SUPPORT FOR NIFTY:  11400, 11300, 11200

WEEKLY CHART FOR NIFTY 

DAILY RESISTANCE FOR NIFTY: 11650, 11700, 11800

PIVOT POINT: 11550

DAILY SUPPORT FOR NIFTY:  11500, 11400, 11300

DAILY CHART FOR NIFTY 

Nifty kept its head above water all throughout Friday as traders bet on another interest rate cut by the RBI amid hopes of a trade deal between the US and China. Once again our markets witnessed a gap up opening however it was just a formality as within the first few minutes itself nfity gave up all the opening gains. Subsequently, nifty managed to hold on to the previous session low and after a tiring session within a range witnessed one more round of up move during the fag end to eventually close with gains of 0.38% at 11713. Wednesday had a gap up opening in our market, owing to strong positive cues from the global peers. In the initial half an hour of the trade, our benchmark Nifty clocked a fresh record high by a slender margin. In fact, it was not even by a single point and did not last too long as well. This was followed by some consolidation before index taking a nosedive in the penultimate hour not only to wipe off all gains but also to close in the negative territory by losing six tenths of a percent to the previous close. Wednesday’s weak session was followed by a flat start in our markets on Thursday, which was very much in line with sluggish global cues. However, right from the initial trade, market looked nervous and hence, we saw index sliding below 11600 at the cusp of the mid session. We witnessed some recovery post the RBI monetary policy. But it was clearly a short lived bounce back as the outcome of RBI cutting the repo rate by 25 bps was already been discounted in the prices. Eventually, the penultimate day of the trading week ended tad below 11600 by trimming another four tenths of a percent.

NIFTY VIEW FOR COMING WEEK  8 APRIL TO 12 APRIL 2019

This certain correction 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. As far as levels are concerned, we see strong support zone in the vicinity of 11500 – 11300 and we expect buying to emerge once index enters this zone. On the higher side, 11700 followed by 11900 would be seen as immediate hurdles. A sustainable move above this would push the index back to its all-time highs, which we expect to be surpassed soon.

 TECHNICALLY SPEAKING.

Let’s dig into a bit of technical now. In our sense, the stage was set for this kind of move when Nifty convincingly surpassed 11600. We were vocal about this rally getting extended towards 11700 – 11900, which was the higher end of the ‘Megaphone’ pattern. Index has reached this junction and in fact due to strong exuberance, Nifty extended its march towards the 12000 mark. Now, we are at a kissing distance from this figure and it’s a matter of time, index would actually see this number. But, the point is, will there be some exhaustion seen or index would continue heading towards all time highs.

Honestly speaking, we are at crucial technical ratios and considering the pace of the move, the risk-reward for fresh trader has gone for a toss now. In our sense, some kind of consolidation would now be seen for a while before unfolding the next leg of the rally. By no means, one should go short, rather it’s time to be selective when it comes to individual stocks and should be done with a proper money management. On the higher side, 11800 followed by 11900 would be the immediate levels to watch out for and on the downside, 11500 and 11400 should be seen as important supports in the forthcoming week.