NIFTY WEEKLY OUTLOOK & MAY EXPIRY TRADING TIPS 8 JUL TO 12 JUL 2019

WEEKLY RESISTANCE FOR NIFTY: 11900, 11950, 12000

 PIVOT POINT: 11800

WEEKLY SUPPORT FOR NIFTY:  11750, 11700, 11650

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 11850,11900,11950

PIVOT POINT:11815

DAILY SUPPORT FOR NIFTY :  11775,11725,11675
DAILY CHART FOR NIFTY

 Nifty finally managed to close above 11800 mark. We had a head start for the current week and with Union Budget scheduled on 5 july  2019. Monday morning, there was a complete sea of green in all equity markets across the globe, mainly on the back of some positive developments with respect to US-China trade war over the weekend. Our markets too had a rub off effect of this and as a result, we opened higher well above the 11800 mark. This was followed by a consolidation throughout the remaining part; but the bias remained strongly bullish as we witnessed a series of higher highs higher lows to conclude with over six tenths of a percent gains. Tuesday, our markets started on a positive note owing to global cues. However it was merely a formality as we saw index sliding into a negative territory in the initial trades and in the process went on to test the psychological support of 11800 (low 11815). In line with recent pattern, this the dip was construed as a buying opportunity which accelerated in the latter half to not only reclaim the positive territory but also to conclude the session above the 11900 mark. Wednesday our markets opened higher in-line with what Nifty had indicated. After initial hiccups, index settled above the 11900 mark and then gradually extended the early morning lead. However, some profit booking was witnessed at the stroke of the final hour, which pared down major portion of gains to conclude with negligible gains.  Thursday also had a gap up opening; however the margin has not been so great. During the day, we witnessed completely lackluster moves as there was no participation seen ahead of the major event (Budget). Some small swings were seen in the final hour; but it was certainly not a notable movement. Hence, Nifty eventually ended tad below the 11950 mark by adding one fourth of a percent to the previous close. On Friday Market came down after Union finance minister Nirmala Sitharaman presented her maiden budget. The sensex dropped nearly 450 points, while the Nifty tested 11800-levels as soon as the Budget speech was over. Sensex crashed 450 points 39459; and Nifty moved 143 points or lower to 11804.

NIFTY: A STRONG SUPPORT WILL BE @ 11590; STRONG RESISTANCE LEVEL SEEN @12000

we hope to see this optimism continuing for the forthcoming week as well. As far as levels are concerned, we are facing some challenges around 11925 – 11955; but it’s a matter of time, we expect this wall to get demolished soon. In fact, the kind of broad-based participation we are witnessing, 12000 seems very much on cards. On the lower side, 11775 followed by 11725 are now likely to provide decent support. In case of a decline towards the mentioned support zone, traders can take this opportunity to create longs. On the daily & weekly chart, Index after forming a base around 11700 – 11650 have firmly moved up in last few sessions to close above its hurdle of 11850.  chart looks a bit tired, which is not at all an encouraging sign. We have been quite vocal on this scenario and going ahead we remain optimist on the markets . In our sense Index is likely to extend its up move towards 12000 and beyond in the near term,, dips should be taken as a buying opportunity as we saw in the last few sessions. Support is placed around 11775 – 11700 levels

TECHNICALLY SPEAKING.

Although, last couple of days saw some struggle around 11800 – 11850, the Nifty eventually managed to close tad below the 11850 mark by adding more than half a percent to the previous week’s close.  Nifty managed to hold key support zone of 11635 – 11590. These levels were critical supports because 11590 is the higher end of the ‘Upward Gap Area’ created post the exit poll numbers. And 1635 being the 161% Fibonacci retracement levels of the small up move from 11769.50 to 12000.35. This level coincided with the ‘Potential Reversal Zone’ as per the ‘Bullish Wolfe Wave’ structure, which was clearly visible on chart. After this week’s strong bounce back, the above mentioned technical evidences clearly proved its significance. Traders are advised to prepare themselves for some bigger swings.  Technically speaking, we still remain hopeful as long as 11635 – 11590 are not violated and on the higher side, we will not be surprised to see move towards 12000 and beyond in next few days. Before that 11855 – 11900 has become a sturdy wall, which needs to be surpassed convincingly. We hope it be broken in the first half of the coming week, which will trigger some sharp moves in the upward direction.