NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 6 JAN TO 10 JAN 2020

WEEKLY RESISTANCE FOR NIFTY: 12300, 12400,12500

 PIVOT POINT: 12200

WEEKLY SUPPORT FOR NIFTY:  12100, 12000, 11900

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 12275, 12325, 12375

PIVOT POINT: 12200

DAILY SUPPORT FOR NIFTY:  12150, 12100, 12050

DAILY CHART FOR NIFTY

On Monday Inspite of subdued global cues, the Nifty started the week on a positive note with gains of around 30 points. It, however, lacked follow up move to cross the recent high of 12293 and gave up gains in the first few hours. In the second half, however, after making an intraday low of 12213 Index bounced back sharply to end with marginal gains tad above 12250 levels.  On Tuesday In the absence of any trigger, our markets started on a mild negative note and with open high scenario crept lower for the first half. During the mid-session, Index attempted a strong bounce-back however in the last hour there was a sharp selloff as Nifty ended with a loss of 0.71% at 12168. On Wednesday 1st day of 2020 the Nifty started the calendar year on a positive note with gains of around 30 points, however, post that there was no major action in Index. Nifty gyrated within a very narrow range throughout the day and ended with marginal gains at 12182. On Thursday, the session clearly belonged to handful of heavyweight movers and midcaps from the Derivatives segment. Clearly it was a feast for FO traders as so many liquid names clocked good intraday rally. As far as Nifty is concerned, marquee names likes RIL, HDFC Twins, ICICI Bank and not to forget Larsen and Toubro, who finally looked like coming out of the slumber. When these names start moving then no brainer the benchmark had to do well. This is what we saw and throughout the day, the buying momentum continued in the market. Market breadth was slightly negative on Friday after US military killed Iran Revolutionary Guards' commander Qasem Soleimani in a surprise air-strike. The middle-east tensions sent Brent Crude Futures soaring, while market sentiment turned sour at D-Street. The Sensex, which hit an intra-day low of 41348, recovered slightly in the fag-end of the session and settled 162 points, lower at 41464 level. The Nifty lost 55 points, to settle at 12226 marks. Bears try to pounce on back of the global development and push index lower.

NIFTY: A STRONG SUPPORT WILL BE @ 12100; STRONG RESISTANCE LEVEL SEEN @12300

With Thursday spectacular move, the Nifty is at a kissing distance away from its record highs and the way it’s shaped up now, we will not be surprised to see it surpassing today at the opening itself. The daily chart clearly exhibits a configuration of ‘Bullish Flag’. The breakout will get confirmed once prices sustain above 12300 to continue their march towards 12400 – 12500. On the downside, in case of any initial decline, a move towards 12100 – 12000 should be used as a buying opportunity. We continue to remain sanguine on the market and advice traders not to be a brave heart by taking contradictory bets against the direction.

TECHNICALLY SPEAKING.

This week nifty had reached near the upper end of the trading range i.e. 12300. It was just a stone’s throw away from the all-time high of 12293. On Friday, however, the index nosed dive from the upper end of the consolidation zone. Consequently the index closed negative for the second consecutive week. On lower time fame, the sideways action has taken form of a triangular pattern. On the higher side, the index needs to surpass the level 12300 on closing basis in order to resume the rally. On the downside, 12200-12100 will be the key support zone to watch out for. Failure to hold on to the supports would mean deeper is in the offing. A small negative candle was formed this week with lower shadow (according to weekly time frame chart). This pattern signals a broader range movement in the Nifty around 12275-11125 levels. The upside strength of the Nifty is still intact, there is a possibility of an attempt of new all-time high formation by next week (above 12300), but the Nifty could encounter hurdle at 12350-12400 levels. Market breadth was a tad negative but nothing alarming. Overall the trend continues to remain up and we continue to maintain our bullish stance and our target of 12400-12450 zone. In the near term, support is placed at 12200 zone. Broadly we expect mid and small caps to outperform going ahead and IT sectors will continue to shine.