NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 22 OCT TO 25 OCT 2019

WEEKLY RESISTANCE FOR NIFTY: 11650, 11750, 11850

 PIVOT POINT: 11600

WEEKLY SUPPORT FOR NIFTY:  11550, 11450, 11350

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 11600, 11700, 11800

PIVOT POINT: 11550

DAILY SUPPORT FOR NIFTY:  11500, 11400, 11300

DAILY CHART FOR NIFTY

Past week was a great week for the markets gained on each of the five trading days last week. The SENSEX gained 1171 points to close at 39298 points. NIFTY gained 356 points to close at 11661 points. The markets had rallied late last week on hopes of an early Brexit resolution. The latest development can reverse that optimism to some extent. However, doubts prevail about how smoothly the whole process will get completed. The market breadth was positive in two out of the five trading sessions of the week. The top sectoral gainers for the week were the auto, PSU, realty, metal and oil & gas indices and there were no losers. The Indian markets may react to British Parliament's vote to delay a decision on new Brexit deal this week. Investors will await corporate results from Maruti Suzuki, SBI, ITC, Hero MotoCorp, Larsen & Toubro, Kotak Mahindra Bank, Bajaj Auto and HCL Technologies due this week.

NIFTY: A STRONG SUPPORT WILL BE @ 11500; STRONG RESISTANCE LEVEL SEEN @11800

Technically speaking, the Nifty is now placed at a crucial junction, which may probably set the tone for next few weeks or few months. On the daily chart, we can see prices approaching the psychological barrier of 11650 which coincides with very important neckline of ‘Inverse Head and Shoulder’ pattern. We have been upbeat in recent declines also and the way we are shaped up now, we will not be surprised to see a gap up opening today beyond 11600.

TECHNICALLY SPEAKING.

Last few days have been lethargic in terms of index movement but if we look at it meticulously, the overall breadth has improved drastically and the way institutional buyers finally started participating, it seems to be forming some platform for the near future. Although the recent movement has not been so swift, with last two day’s strong move, we are back to recent highs. And to provide some credence to this development, the recent underperformer banking index, seems to have come out of its slumber. On the daily chart, we can see prices finally surpassing the psychological barrier of 11600 which coincides with very important neckline of ‘Inverse Head and Shoulder’ pattern. We have been upbeat in recent declines also and now after confirming this breakout, we will not be surprised to see this rally extending towards 11800 - 11900 first and then a continuation beyond 12000 also cannot be ruled out. On the flipside, 11500 – 11400 would now be seen as immediate support base for the index.