VEDL 150 CALL ACHIEVED ALL TARGET MADE A HIGH OF 5.25
DAILY RESISTANCE FOR NIFTY: 12100, 12150, 12200
PIVOT POINT: 12050
DAILY SUPPORT FOR NIFTY: 12000, 11950, 11900
DAILY CHART FOR NIFTY
If an end well all is well finally nifty
closed the week near 12100 mark. Bulls march ahead and continue with the
momentum. All signs suggest bulls are in a mood to push index higher towards
fresh all-time highs however, over the weekend global as well as local triggers
are lined up which could create some volatility going ahead. Market breadth was
strongly positive and all sectoral indices were in the positive with the
highest gainer being the PSU bank index. After a gap up opening market extended
gains on Friday on the back of the progress in US-China trade deal and the
Conservative Party's likely win in the UK polls. The Sensex was trading
400 points, higher at 40980 levels while the nifty closed the week at
12085 up by 114 points. The Nifty index started the week on a flat note and
then corrected in the initial 15 minutes of trade. However, the support of
11883 played its role and the index rebounded from its morning lows. The index
then consolidated in a range for the rest of the session and ended the Monday’s
session with marginal gains at 11937. The Nifty index started trading on a flat
note on Tuesday. Post consolidating in a range till noon, the index corrected
along with the broader markets and ended the session with a loss of about 80
points at 11857. Post opening on a flat note on Wednesday, the Nifty pulled a
bit higher upto 11900 in the first hour of the trade. However, the index then
resumed its correction and crept lower to breach the previous day’s low. Just
when the broader markets were witnessing a selling pressure, the index
recovered smartly in the last hour of the day and rallied to close above the
11900 mark. After a smart recovery in the last hour in Wednesday’s session, the
indices opened gap up in Thursday’s trading session. During the day, the index
reclaimed the 12000 mark as the broader markets witnessed good momentum and it
ended the session at 11972 with gains of over half a percent. There are a
couple of reasons behind Friday’s rally. Not only Boris Johnson is getting the
majority that augments smooth Brexit expectations, the trade war also going to
end. That is helping the market sentiments. One of the key reason, why
US China deals have not worked is due to China not fulfilling its obligation
for importing farm products from US. We believe the new agreement will have
provisions for automatic roll back of tariff cuts if the other party does not fulfill
its obligations. Hence, the chances of this deal going though are better than
earlier efforts. From global standpoint, it’s positive news for commodities and
equity markets.
TECHNICALLY SPEAKING
FOR SUCH CALLS IN LIVE MARKET WHATSAPP ON 9039542248
WEEKLY RESISTANCE FOR NIFTY:
12200, 12300, 12400
PIVOT POINT: 12000
WEEKLY SUPPORT FOR NIFTY: 11900, 11800,
11700
WEEKLY CHART FOR NIFTY
DAILY RESISTANCE FOR NIFTY: 12100, 12150, 12200
PIVOT POINT: 12050
DAILY SUPPORT FOR NIFTY: 12000, 11950, 11900
DAILY CHART FOR NIFTY
If an end well all is well finally nifty
closed the week near 12100 mark. Bulls march ahead and continue with the
momentum. All signs suggest bulls are in a mood to push index higher towards
fresh all-time highs however, over the weekend global as well as local triggers
are lined up which could create some volatility going ahead. Market breadth was
strongly positive and all sectoral indices were in the positive with the
highest gainer being the PSU bank index. After a gap up opening market extended
gains on Friday on the back of the progress in US-China trade deal and the
Conservative Party's likely win in the UK polls. The Sensex was trading
400 points, higher at 40980 levels while the nifty closed the week at
12085 up by 114 points. The Nifty index started the week on a flat note and
then corrected in the initial 15 minutes of trade. However, the support of
11883 played its role and the index rebounded from its morning lows. The index
then consolidated in a range for the rest of the session and ended the Monday’s
session with marginal gains at 11937. The Nifty index started trading on a flat
note on Tuesday. Post consolidating in a range till noon, the index corrected
along with the broader markets and ended the session with a loss of about 80
points at 11857. Post opening on a flat note on Wednesday, the Nifty pulled a
bit higher upto 11900 in the first hour of the trade. However, the index then
resumed its correction and crept lower to breach the previous day’s low. Just
when the broader markets were witnessing a selling pressure, the index
recovered smartly in the last hour of the day and rallied to close above the
11900 mark. After a smart recovery in the last hour in Wednesday’s session, the
indices opened gap up in Thursday’s trading session. During the day, the index
reclaimed the 12000 mark as the broader markets witnessed good momentum and it
ended the session at 11972 with gains of over half a percent. There are a
couple of reasons behind Friday’s rally. Not only Boris Johnson is getting the
majority that augments smooth Brexit expectations, the trade war also going to
end. That is helping the market sentiments. One of the key reason, why
US China deals have not worked is due to China not fulfilling its obligation
for importing farm products from US. We believe the new agreement will have
provisions for automatic roll back of tariff cuts if the other party does not fulfill
its obligations. Hence, the chances of this deal going though are better than
earlier efforts. From global standpoint, it’s positive news for commodities and
equity markets.
NIFTY:
A STRONG SUPPORT WILL BE @ 11800; STRONG RESISTANCE LEVEL SEEN @12250
The indices then witnessed a swift up to
conclude the week on a positive note. The index surpassed the 12100 mark, but
ended the session tad below it at 12085. A sustained move above 12000 could
again lead to some broad based buying which could provide good trading
opportunities. The Buy on dip approach seem to be working quite well and hence,
traders are advised to continue to capitalize on the same and trade with a
positive bias. For next week, the support for Nifty is placed in the range of 11900-11800
whereas resistance is seen around 12150-12250.
Market has seen stupendous run over the
past couple of months without any major correction. During this week, we
finally saw some respite to this ongoing optimism. In the latest Golden Cross,
the 50-day moving average of the MSCI EM Index has reached 12098 compared with
the 200-day moving average of 12133. The index had gained nearly 6% after
forming a Golden Cross pattern before topping out. The Sensex and Nifty too
reported the Golden Cross formation about a fortnight ago A Golden Cross occurs
when the short-term moving average crosses above the long-term average. It is
perceived as a bullish technical pattern. Besides, Nifty 50’s relative strength
index (RSI) is currently 53. RSI is a measure of magnitude of the recent price
change. RSI of more than 70 is considered as overbought territory, while sub-30
is oversold. The sharp upside momentum
continued in the Nifty today for the third consecutive sessions and closed the
day with decent gains. A long bull candle was formed today with back to back
opening upside gaps (both the upside gaps are unfilled). Technically, this
pattern indicates a sharp comeback of bulls from the lower levels. Nifty as per
weekly timeframe formed a long bull candle with lower shadow. This candle
pattern was formed immediately after the formation of bearish engulfing type
pattern in the last week. This is positive indication and one may expect
further upside in the short term. A sustainable move above 12150 levels could
nullify the negative implication of bearish engulfing. One may expect Nifty to
reach up to 12,150-200 levels by next week and there is a possibility of an
emergence of selling pressure again around all-time highs. Near term, support
is places at 11975 zone & Resistance at 12200.
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