WEEKLY RESISTANCE FOR NIFTY: 12400, 12500,12600
DAILY RESISTANCE FOR NIFTY: 12395, 12455, 12500
PIVOT POINT: 12325
We had a gap up opening to kick start the new trading week. In the opening ticks itself, Nifty registered yet another record high beyond Friday’s high of 12311.20. Barring few ticks thereafter, Nifty managed to trade convincingly above the 12300 mark to end the session at the highest point ever by adding nearly six tenths of a percent to the bulls’ kitty. On Tuesday we had a sluggish start for the day which was clearly unexpected considering Monday’s strong close at the highest point ever. However, market settled after the initial nervousness and then slipped into a consolidation mode for quite some time. Finally at the stroke of the penultimate hour, market picked up some buying momentum and went on to post fresh record highs well beyond the 12350 mark. Wednesday had a weak start for the day in the wake of not so favorable news from the global peers. The selling pressure intensified in the initial hour itself to test 12300 first and then a gradual decline led to sub-12300 levels. However, as expected, we saw massive buying interest at lower levels which accelerated in the final hour of the day to trim major portion of losses. Eventually, Nifty managed to reclaim 12300 with some authority. After a spectacular tail end surge on Wednesday, Markets opened flat on Thursday morning owing to muted global cues. In the initial trades, Nifty once again inched towards 12400 but attempt turned unsuccessful for the second time in last three days. This resulted into a sharp decline to retest the lower end of the intraday range. Fortunately, our markets managed to defend key levels as we saw a steady recovery throughout the second half to conclude the weekly expiry with nominal gains. On Friday market traded flat for majority of the session as the bulls and bears wrestled for supremacy ahead of the December quarter results of some index heavyweights. The nifty swung around the psychological mark of 12350. Nifty closed the week at 12352. The Nifty managed to close in the positive territory and now, knocking on the doors for new milestones. The action packed week with wild swings finally ended in the favor of mighty bulls and going by the famous phrase ‘All’s well that ends well’, the wider smile is back on the faces of market participants. This Thursday, we continued our northward trajectory and with the help of complete gush, managed to clock fresh record highs 12389. However, due to decent profit booking on Friday, Nifty came off considerably from highs but not to worry, the overall structure still looks sturdy. Once we manage to reclaim 12400 again, we will not be surprised to see index heading towards next milestones of 12500 – 12600 in the forthcoming week itself. On the lower side, 12300 followed by 12200 would be seen as immediate supports.
NIFTY: A STRONG SUPPORT WILL BE @ 12200;
STRONG RESISTANCE LEVEL SEEN @12500
Clearly, market is in that sort of zone where any small positivity or may be an absence of negative news flow can help market continue its northward march. This is what we witnessed yesterday in the final hour of the trade. Despite banking index underperforming, the Nifty managed to continue its dream run, because some of the other heavyweights managed to chip in considerably. We continue to remain upbeat and expect the index to gradually head towards next milestones of 12500 – 12600 in coming days. On the flipside, 12300 followed by 12200 remains to be an immediate support zone. As far as index-specific traders are concerned, it would certainly be a difficult phase as we do expect such dull moves in the market; but the undertone remains bullish.
PIVOT POINT: 12300
WEEKLY SUPPORT FOR NIFTY: 12200, 12100, 12000
WEEKLY CHART FOR NIFTY
DAILY RESISTANCE FOR NIFTY: 12395, 12455, 12500
PIVOT POINT: 12325
DAILY SUPPORT FOR NIFTY: 12275, 12225, 12175
DAILY CHART FOR NIFTY
We had a gap up opening to kick start the new trading week. In the opening ticks itself, Nifty registered yet another record high beyond Friday’s high of 12311.20. Barring few ticks thereafter, Nifty managed to trade convincingly above the 12300 mark to end the session at the highest point ever by adding nearly six tenths of a percent to the bulls’ kitty. On Tuesday we had a sluggish start for the day which was clearly unexpected considering Monday’s strong close at the highest point ever. However, market settled after the initial nervousness and then slipped into a consolidation mode for quite some time. Finally at the stroke of the penultimate hour, market picked up some buying momentum and went on to post fresh record highs well beyond the 12350 mark. Wednesday had a weak start for the day in the wake of not so favorable news from the global peers. The selling pressure intensified in the initial hour itself to test 12300 first and then a gradual decline led to sub-12300 levels. However, as expected, we saw massive buying interest at lower levels which accelerated in the final hour of the day to trim major portion of losses. Eventually, Nifty managed to reclaim 12300 with some authority. After a spectacular tail end surge on Wednesday, Markets opened flat on Thursday morning owing to muted global cues. In the initial trades, Nifty once again inched towards 12400 but attempt turned unsuccessful for the second time in last three days. This resulted into a sharp decline to retest the lower end of the intraday range. Fortunately, our markets managed to defend key levels as we saw a steady recovery throughout the second half to conclude the weekly expiry with nominal gains. On Friday market traded flat for majority of the session as the bulls and bears wrestled for supremacy ahead of the December quarter results of some index heavyweights. The nifty swung around the psychological mark of 12350. Nifty closed the week at 12352. The Nifty managed to close in the positive territory and now, knocking on the doors for new milestones. The action packed week with wild swings finally ended in the favor of mighty bulls and going by the famous phrase ‘All’s well that ends well’, the wider smile is back on the faces of market participants. This Thursday, we continued our northward trajectory and with the help of complete gush, managed to clock fresh record highs 12389. However, due to decent profit booking on Friday, Nifty came off considerably from highs but not to worry, the overall structure still looks sturdy. Once we manage to reclaim 12400 again, we will not be surprised to see index heading towards next milestones of 12500 – 12600 in the forthcoming week itself. On the lower side, 12300 followed by 12200 would be seen as immediate supports.
Clearly, market is in that sort of zone where any small positivity or may be an absence of negative news flow can help market continue its northward march. This is what we witnessed yesterday in the final hour of the trade. Despite banking index underperforming, the Nifty managed to continue its dream run, because some of the other heavyweights managed to chip in considerably. We continue to remain upbeat and expect the index to gradually head towards next milestones of 12500 – 12600 in coming days. On the flipside, 12300 followed by 12200 remains to be an immediate support zone. As far as index-specific traders are concerned, it would certainly be a difficult phase as we do expect such dull moves in the market; but the undertone remains bullish.
TECHNICALLY SPEAKING.
Clearly,
benchmark index has lost its sheen and hence, we are seeing such haywire moves
in this week. The major culprit of this is none other than banking
conglomerates that are underperforming considerably. Fortunately, some or the
other heavyweight Nifty constituents are able to lift the index higher from
intraday declines. We continue to expect such choppy moves in index and hence,
it’s advisable not to trade aggressively in index specific trades. And the apt
strategy to trade in such behavior would be to trade the range i.e. buy as close
as possible to supports and vice versa. Ideally it’s absolutely okay to avoid
index trades and should focus on individual stocks. As far as levels are
concerned, sooner or later, we expect the index to gradually head towards next
milestones of 12500 – 12600 in coming days and on the downside, 12300 followed
by 12200 remains to be a sacrosanct support zone. Traders are advised not to be
adventurous by taking positions against the major direction. We have already
seen the consequences of shorting this market in the week gone by. However, the
real highlight was the sheer outperformance of the mid and small cap baskets.
We have been quite vocal on this space of late and the way it’s shaped up, we
expect stellar moves from the broader end of the spectrum. Do watch out for
potential candidates from this universe along with the ‘Auto’ counters who are
poised for good moves in the near future.
No comments:
Post a Comment