NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 26 AUG TO 30 AUG 2019

NMDC 87.5 PUT GIVEN IN 21 AUG POST ACHIEVED OUR TGT 4.8 & MADE A HIGH OF 12

WEEKLY RESISTANCE FOR NIFTY: 11000, 11200, 11300

 PIVOT POINT: 10900

WEEKLY SUPPORT FOR NIFTY:  10800, 10700, 10600

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 10900, 10950, 11000

PIVOT POINT:10850

DAILY SUPPORT FOR NIFTY :  10800, 10750, 10700

DAILY CHART FOR NIFTY

The set up was just perfect for our markets to have a head start for the new trading week. In line with cheerful global peers, our markets started higher on Monday and then extended this lead in the first half. Things started to look hunky dory and all of a sudden, Nifty started correcting after posting a high of 11146.90. In fact, the selling augmented in the penultimate hour to pare down all losses to conclude the day on a flat note. Markets have shown some encouraging signs in last couple of days and yesterday too things started to look glittery. But considering recent dejected mood, markets faced strong selling pressure at higher levels and left the charts clueless at the end. Tuesday our markets started the proceedings on a flat to positive note tracking the mixed global cues. Subsequently, Index witnessed an extreme lackluster session with choppy swings seen on both sides of the trend to eventually end with a loss of 0.33% tad above 11000 levels. On the daily chart, Index for the fourth consecutive session traded within the range of big black body candle formed on 13th Aug and has now ended near the midpoint of this range. In the absence of major triggers, our markets started on a flat note on Wednesday which was followed by a period of consolidation during the first few hours. Subsequently, in the second half, Index extended the weakness seen from the start of the week to end tad above 10900 levels with a loss of 0.89%. During the session, we witnessed Index breaking below the key trend line support seen on the hourly chart but it managed to hold on to 10900 levels which we have been advocating since last few sessions. Thursday as indicated by SGX Nifty our markets started on a mild negative note which was then followed by sell-off that continued throughout the session. On the weekly options expiry day, intraday bounce got sold into and Index eventually ended with a loss of 1.62% at 10741. The market snapped their three-day losing streak ahead of Finance Minister Nirmala Sitharaman's press briefing due later in the day. Expectations from Finance Ministry to announce policy measures to revive economy helped the benchmarks recover in Friday’s session. The Sensex and Nifty opened lower but staged a recovery noon deals led by Reliance Industries, HDFC, Tata Consultancy Services, Mahindra & Mahindra and Infosys. The Sensex rose over 700 points from day's lowest level. The Sensex ended 228 points higher at 36701 and the Nifty advanced 88 points to close at 10829.

NIFTY: A STRONG SUPPORT WILL BE @ 10700; STRONG RESISTANCE LEVEL SEEN @11100

We still like to remain a bit hopeful as long as a crucial support of 10700 is not violated. We continue with the similar kind of commentary and expect the index to reattempt testing of 11150 – 11200. As of now, it’s just anticipation, but a beginning of a healthy relief rally would only be confirmed after surpassing 11150 on a sustainable basis. In this scenario, 11225 – 11300 becomes the next resistance zone for the index. On the lower side, 10900 followed by 10700 would be seen as supports.  Technically not much has changed to talk about and the next trending move can only be seen on a range break from 10800 – 11200 levels. This week we had lethargic trading sessions we witnessed good stock specific moves and some of the marquee names from Auto and IT sector showed promising signs. Going ahead in such range bound markets traders are advised to continue focus on stock-specific trades which are providing outperforming opportunities.

TECHNICALLY SPEAKING.

For the coming session, we will closely monitor how Index react around 10900 levels as a sustained trade below the same may trigger further weakness to retest recent lows of 10750 and further. On the flip side, if Index manages to hold the support of 10718 which is the low of 22nd August big black body candle then we may see a bounce back towards 11035 and towards the high of the candle at 11147 levels. Hence, 10900 can be taken as a make or break level. Traders are advised to keep a tab on the same and trade accordingly. On the daily & weekly chart, Index after consolidating within the trading range of 13th August for five consecutive sessions eventually broke the range on the downside which triggered a sharp selloff breaking major support levels with ease. Index has now broken below previous swing low of 10782 and the momentum is strongly gripped by bears. Traders are advised not to be aggressive on short positions as the oscillators are placed in deep oversold zone and we are witnessing PRZ (Potential Reversal Zone) of a harmonic pattern in the range 10700 - 10740 which may trigger in between sharp bounce. As far as resistance is concerned 10800 - 10845 can now act as an immediate hurdle. Traders are advised to keep positions light and avoid undue risk.