NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 23 MARCH TO 27 MARCH 2020

WEEKLY RESISTANCE FOR NIFTY: 9200, 9500,10000

 PIVOT POINT: 8500

WEEKLY SUPPORT FOR NIFTY:  8300, 8100, 7800

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8900, 9000, 9100
PIVOT POINT: 8550

DAILY SUPPORT FOR NIFTY:  8300, 8200, 8100

DAILY CHART FOR NIFTY

Whatever we have witnessed over the past few days, it’s clearly once in a lifetime phenomenon. Market has taught everyone, we should never underestimate the ‘Uncertainty’. Every day, market is bleeding as if there is no tomorrow; because people are clue less and don’t know how and when we are going to come out of this. After Friday’s recovery, many must have thought the short term bottom is made but this hope did not last too long. Within three subsequent sessions, Friday’s low was not only tested but also broken quite convincingly. The indices started the week with a huge gap down opening and resumed the downtrend to end with a cut of over 7%. Looking at the positive U.S. Futures market, our markets started trading marginally positive on Tuesday. However, post consolidating in a range, the broader markets again witnessed selling pressure in the later half and ended the session with a cut of two and a half percent. Wednesday our markets kept sinking throughout the day to conclude below 8500 with yet another severe cut of over 5%.  The indices again started trading for the day with a significant gap down opening of about 500 points in Thursday session to breach the 8000 mark. The index remained under pressure till noon but then a sudden bout of recovery in the later half led to an up move and the index recovered all the losses to trade with gains of about 100 points. However, we again saw some selling pressure in the last half an hour to end this volatile day with a loss of over 200 points at 8263. On account of strong global cues Post-Wall Street rebound, the Indian Indices surged around 5.75 per cent on World Happiness Day. The Sensex shot up 1627 points and closed at 29915 levels while Nifty soared 482 points and closed at 8745 levels. This rise in the Indian indices was mainly due to the fresh buying in energy, oil and gas and metal stocks.
NIFTY: A STRONG SUPPORT WILL BE @ 8000; STRONG RESISTANCE LEVEL SEEN @10000

As far as levels are concerned, below 8000 we may see selling getting aggravated and on the flipside, a resumption of uptrend should only happen if Nifty manages to sustain above 10000. Traders are advised to keep a tab of all the above mentioned levels and should ideally avoid taking undue risks.

TECHNICALLY SPEAKING.

Since last few days we have not been emphasizing too much on the levels; because in such kind of situations, no levels are respected. Rather, we have been focusing more on INDIA VIX which is at elevated levels, at 12 years high. So rather than looking at any level in indices, one should wait for the Fear indicator to cool off. Till the time it doesn’t happen, the onslaught is likely to continue. Also, one eye needs to be on the global peers as well. At present, we continue to advice momentum traders to avoid going against the direction and should strictly avoid leveraged trades. However, for investors with a broader perspective, we still believe that although it’s an unprecedented panic situation, one should look to accumulate quality propositions in a staggered manner.