NIFTY WEEKLY OUTLOOK & MAY EXPIRY TRADING TIPS 17 JUN TO 21 JUN 19

WEEKLY RESISTANCE FOR NIFTY: 11900, 12000, 12100

 PIVOT POINT: 11800

WEEKLY SUPPORT FOR NIFTY:  11700, 11600, 11500

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 11875,11975,12050

PIVOT POINT:11825

DAILY SUPPORT FOR NIFTY :  11775,11750,11700

DAILY CHART FOR NIFTY

The indices on Friday clocked worst week in over a month amid global cues and key inflation data. Sensex closed at 39452 falling 289 points, while Nifty dropped by 90 points, at 11823. The Nifty hinted at a gap up opening on Monday and in line with the expectations, the index started the week on a positive note. Nifty rallied higher in the first half hour of the trade but it then corrected gradually to wipe out the morning gains. The index eventually witnessed some pullback in the last hour and ended the day with gains of about half a percent. On Tuesday Nifty opened on a positive note and corrected marginally from the opening ticks in the first hour of the trade. However, the index rallied higher from the 11900 mark to test the 12000 level during the day. It eventually ended the day near the opening levels. On Wednesday post opening on a flat note, the Nifty corrected in the initial couple of hours to breach the 11900 mark. However, the index oscillated around this level throughout the day and ended the session tad above it with a loss of half a percent. On Thursday Nifty hinted at marginal negative opening yesterday and in line with expectations, the index started the day on a weak note. Nifty continued the negative momentum till noon; but it reversed and rallied higher for rest of the day to wipe out the intraday losses and end on a flat note.

NIFTY: A STRONG SUPPORT WILL BE @ 11700; STRONG RESISTANCE LEVEL SEEN @12000

Post testing the ’20 DEMA’ support of 11770, the index has seen a pullback move in last few  trading sessions. One of the symmetry in these few session have been observed that the index has opened on a positive note and post intraday moves on both the sides, there has been formation of ’doji’ candlestick in these three days. We believe that the index is undergoing a timewise correction within an uptrend and hence, traders need to trade with a stock-specific approach. In the coming session, 119050-12050 will be seen as immediate resistance as there is a confluence of key retracement levels in this zone. Since the index has resisted around this zone in the recent past as well, it needs to sustain above the same with broader market participation for a continuation of the uptrend. On the flipside, 11700 followed by 11650 are the key near term support.

TECHNICALLY SPEAKING.

The index once again witnessed correction to drag the index well below the 11900 mark. On the lower time frame chart, the index has breached below the support of a ‘Rising Wedge’ pattern and such scenarios usually lead to a short term corrective phase. In Friday’s session, the index tested its’20 DEMA’support of 11825 and recovered from the lows. Thus, 11825 would be the crucial support to watch for in the coming week and if the same is breached, then the index should continue to correct towards 11775-11715. On the flipside, the index is likely to face resistance around 11875-11975 on pullback moves. Overall, we expect the index to consolidate within the above mentioned boundaries in near term. One should keep in mind that the higher degree trend continues to be positive and this is just a corrective phase within an uptrend. Hence, positional traders should look to accumulate stocks when the index approaches the mentioned support range.