NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 30 MARCH 3 APRIL TO 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

This is clearly one of the worst phases the whole world is undergoing at present. Not only in terms of financials or economies but also in terms of health crisis. This uncertainty due to coronavirus pandemic is weighing down heavily on markets across the globe and it was yet another day of carnage for Indian markets. We opened the week significantly lower and after initial trades locked into a lower circuit for the second time in last 7 sessions. Unlike the previous circuit day, yesterday we didn’t even see a mild recovery; in fact the selling augmented to conclude yet another terrible day with a cut of 13%. Worldwide the trading screen was positive early in the morning on Tuesday  after US FED announced some measures to support the US economy in such difficult times. Hence, we had a good bump up at the opening after Monday’s mayhem. But surprisingly, we lost all the sheen in initial trades to slide tad below Monday’s low. Finally after an hour, market stabilised and started moving. Despite US markets posting a colossal overnight rally, we started the wednesday marginally in the red, which was mainly a hangover of PM Modi’s announcement on country lockdown for 21 days. After initial hiccups, we finally joined hands with our global peers and a strong buying across the board thereafter pushed Nifty significantly higher to reclaim the 8300 mark. Wednesday’s colossal rally was followed by a positive start for the thursday, despite some sluggishness in the global peers. After some initial consolidation, our markets picked up strong momentum to post positive close for the third consecutive day. Despite some intraday declines, the Nifty managed to add yet another three percent gains to Wednesday’s relief move and concluded the terrifying March series with nearly 15% recovery from lows.

NIFTY: A STRONG SUPPORT WILL BE @ 9500; STRONG RESISTANCE LEVEL SEEN @7500

Let see how things shape up on the global front now. If we see the relief move getting extended in global markets, we would see some extension of this week move in our markets. For the coming session, 8000-7500 remains to be a key support; whereas on the higher side, 9000-9500 is the level to watch out for. If Nifty has to continue some relief move, the Nifty needs to surpass this hurdle convincingly to head towards 10000.

TECHNICALLY SPEAKING.

Since Tuesday morning, almost all world markets were looking jubilant and despite we closing in the green, the reaction from our markets is not as similar as the rest of the world. Nevertheless, we have managed to defend 7500 and have shown some signs of relief on tuesday. markets are hinting towards a possible rebound and it was very much overdue also after recent relentless fall. All markets across the globe were deeply oversold and hence, a decent bounce back was on cards. For the day, we were observing 8000 as a crucial hurdle. The moment index surpassed and stayed for few minutes, we saw strong bout of short covering thereafter to head towards the mentioned zone of 8200 - 8400. Now market has given the most awaited rebound, but traders should not get carried away by this. It may extend further also, but the uncertainty with respect to coronavirus is still looming over. Till the time it does not subside considerably, we should avoid aggressive bets in the market. At present, it’s advisable to take one step at a time and momentum traders should look to book profits on a regular basis. Nifty precisely met the levels of 8200-8400-8600 one after another. Now technically speaking, the Nifty has displayed first sign of strength i.e. a convincing close above ‘5 day EMA’ after a month. In addition, the ‘RSI-Smoothened’ on daily chart has confirmed a positive crossover in deep oversold territory. Considering all this, we may see this up move getting extended from hereon. Going by technical observations if Nifty manages to stay beyond 8700- 8800 levels then we may see extension of the rally towards 9500-10000. Obviously we need not forget that current situation is different due to pandemic across the globe and hence, a possibility of whipsaws cannot be rules out. If above mentioned technical set up has to work well, things with respect to coronavirus should not aggravate in coming days.