NIFTY WEEKLY PREDICTION & CHARTS 06 MAY TO 10 MAY 2019

WEEKLY RESISTANCE FOR NIFTY: 11775, 11875, 11975

 PIVOT POINT: 11700

WEEKLY SUPPORT FOR NIFTY:  11625, 11550, 11500

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 11750, 11800, 11850

PIVOT POINT: 11725

DAILY SUPPORT FOR NIFTY:  11675, 11635, 11575

DAILY CHART FOR NIFTY 

After an extended weekend, our markets had a sluggish opening on Tuesday as there was no major trigger on the domestic as well as global front. Yes, Brent crude cooled off a bit; but our markets have already discounted it while closing on Friday. On Tuesday, during the initial hour, all of a sudden the selling triggered in the market and in the process, we once again slipped below the 11700 mark. Fortunately for us, quite similar to Friday’s session, we had a good upsurge during the penultimate hour, which pulled the index back into the relatively safer territory.  Wednesday market was closed due to Maharashtra Day. On Thursday post a midweek holiday, our markets started on a mild negative note taking the cues from the SGX Nifty. On Thursday market closed flat gave all its intraday gains in the final hour of trading. The nifty closed down 12 points at 11712.  Subsequently, Index witnessed choppy swings on both sides of the trend twice during the session and eventually ended with a marginal loss of 0.20% at 11725. There is a famous saying, all’s well that ends well and its goes perfectly with the recent price development. Firstly, we successfully managed to defend the key support of 11550 and then went on to close well inside the safe territory by reclaiming the 11800 mark. Now, at his juncture, we do not have signals that will provide us a proper trade set up. But since the broader trend remains bullish, we continue to remain upbeat on the market as long as it holds 11550, convincingly. On the higher side, 11800 followed by 11850 are the levels to watch out for. If we see any renewed buying interest in some of the heavyweight constituents, we would expect index hitting fresh highs very soon. Till the time, the consolidation continues in the range of 11800 – 11550.

NIFTY VIEW FOR COMING WEEK  06 MAY TO 10 MAY 2019

It was a tug of war session between bulls and bears however on the closing not much was changed as Index ended with back to back Doji patterns on the daily chart. On the hourly chart, Index in the morning session did manage to break above the triangle consolidation pattern however it was supported by only a few heavyweight stocks and hence didn’t sustain. Going ahead, we sense the next broad-based and momentum move can be expected only above 11800 till then Index may continue to remain range bound with 11650 followed by 11550 playing a sheet anchor role. Sustained trades above 11800 can open doors for levels of 11900 and 12000 and maybe beyond. Traders are advised not to take aggressive positions till the time we remain trapped in the mentioned range.

 TECHNICALLY SPEAKING.

We had an ideal start of May month and very much on expected lines, index continued its march towards 11850. However, first technical and then derivative factor played out strongly in the market, leading to a strong intraday correction. Technically, if we look at the chart, Nifty faced resistance precisely at the 78.6% Fibonacci retracement of the recent down move from 11856.15 to 11564.80. 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. Honestly speaking, we did not expect this kind of bizarre session. Now as far as levels are concerned, 11600 followed by 11550 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.