NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 28 APRIL TO 2 MAY 2020

WEEKLY RESISTANCE FOR NIFTY: 9390, 9470,9550

PIVOT POINT: 9200

WEEKLY SUPPORT FOR NIFTY:  9100, 9000, 8800
WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 9300, 9375, 9450
PIVOT POINT: 9200

DAILY SUPPORT FOR NIFTY:  9150, 9100, 9050

DAILY CHART FOR NIFTY

Our markets started with a decent upside gap to kickstart the new trading week. However it turned out to be a formality and within first 15 minutes, the index eventually coupled with the Nifty and other global bourses. During the remaining part of the day, index kept flirting with the positive and negative territory to conclude on a flat note. Yesterday, it was a day of consolidation as Nifty kept gyrating within the slender range of 100 points. We had a muted session on Monday but overnight there was unprecedented fall seen in Crude oil prices which spooked traders’ fraternity across the globe. As a result, our markets opened on Tuesday with more than 200 points downside gap and then kept sinking to test the 8900 mark. Due to some mild recovery towards the fag end, the Nifty eventually closed tad below 9000 by shedding three percent as compared to the Monday’s close. Nifty indicating a sluggish start on Wednesday began half a percent higher; courtesy to a bumper opening in heavyweight RELIANCE INDUSTRIES after the announcement of Facebook-Jio deal. However, similar to previous session, the index declined after the opening ticks in first half an hour of trade. But this time, the dip had come not to extend the correction but to rally higher. Post the initial hour, we saw strong buying emerging across the board, mainly in financial stocks, which accelerated as the day progressed to recoup major chunk of previous day’s losses. Thursday, our markets opened higher by shrugging off what Nifty had indicated. During the initial trade, Nifty came off a bit; but as expected, this early morning dip got bought into. In fact the buying momentum accelerated as the day progressed to eventually conclude the penultimate weekly expiry above the 9300 mark.Market extended losses Friday as hopes faded for a quick turnaround for the global coronavirus pandemic. The Sensex ended the week at 31327, down 536 points while Nifty lost 160 points to settle the week at 9154 levels.
NIFTY: A STRONG SUPPORT WILL BE @ 9000; STRONG RESISTANCE LEVEL SEEN @9500

One day up one day down, is clearly a sign of lack of direction and market is clueless which way to move. In a technical term, this phase is known as a consolidation. But within this consolidation, Nifty surpassing 9200 immediately is a sign of strength and hence, 9100-9000 now becomes a sacrosanct support zone. On the upside, we will not be surprised to see this rally getting extended towards 9350 - 9400. But if some strong directional move has to trigger, Nifty has to surpass the upper range of 9350 convincingly. In this case, it unfolds the next leg to head towards 9500-9700. Considering recent price behavior, it’s better not to pre-empt anything, rather it’s better to take one step at a time.. Considering recent higher volatility, Nifty trading in a band of 100 points can be considered as a lethargic activity. Since there was no major activity n Thursday & Friday , the overall view and thereby levels remains unchanged. Till the time Nifty manages to hold the 9000 mark, the possibility of extending the relief rally remains intact. For the coming session, 9400 followed by 9500 can be seen as immediate hurdles; whereas on the flipside, the intraday support can be seen at 9200-9000 levels.

TECHNICALLY SPEAKING.

Our market was clearly struggling at higher levels for the major part of the week but we also cannot deny the fact that the market was reluctant to fall as well. Nifty witnessed extension in the pullback on the upside on April 23, the index had taken support near the lower end of the wedge pattern and had started the pullback. Structurally, the pullback turned out to be a sharp one thus bringing the index closer to the recent high of 9390. In terms of the Fibonacci retracement, Nifty is again trading near 38.2 % retracement of the entire Jan - March fall, which is near 9400.  Thus, Nifty is trading close to a very crucial resistance zone. The bears are likely to make a comeback here unless the index takes out 9,400 -9500 on a closing basis. The near-term support zone, on the other hand, shifts higher to 9200-9100.