NIFTY WEEKLY REPORT FOR EXPIRY WEEK 24 AUG TO 28 AUG 2020

WEEKLY RESISTANCE FOR NIFTY: 11450, 11550,11650

PIVOT POINT: 11350

WEEKLY SUPPORT FOR NIFTY:  11250, 11150, 11050

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 11425, 11475,11525

PIVOT POINT: 11350

DAILY SUPPORT FOR NIFTY:  11300, 11250, 11200

DAILY CHART FOR NIFTY

On the back of positive global cues, Nifty started trading for the week with a gap up around the 11250 mark. However, the index gave up the opening gains in the first hour of trade and corrected by about 100 points from the opening level. It then consolidated for most part of the session and recovered gradually to end the day around the opening levels. The index started the Tuesday session on a flat note; however it rallied higher in the first hour of the day up to 11340. It then consolidated below that level and resumed the positive momentum at the end and tested the 11400 mark in last half an hour. Post Tuesday’s breakout, Nifty started Wednesday’s session with a gap up around the 11450 mark. However, it then consolidated within the range of 11460-11400 throughout the day and ended near the lower end of the range. Our markets have seen some relentless move in the last few weeks along with global peers. Since globally we witnessed some nervousness Thursday morning, our markets reacted with a gap down opening but fortunately not to the tune of what SGX Nifty was indicating. During the remaining part of the day, Nifty gyrated in a small range of nearly 70 points to eventually settle the weekly expiry tad above the 11300 mark. nifty closed the week at 11376. 

NIFTY: A STRONG SUPPORT WILL BE @ 11650; STRONG RESISTANCE LEVEL SEEN @11200

The immediate resistance for the nifty is intact around 11455 and only if the index crosses the same, then Nifty would target the 161.8% retracement level which is seen around 11650. On the flipside, 11200-11100 is the immediate support for the index.RBI stands battle-ready. We will use all conventional as well as unconventional measures as needed in the market. Rates in the bond market have come down across the board. The economy will recover if the infection curve flattens or vaccine is found. India’s economy has a core resilience, it will recover.

TECHNICALLY SPEAKING.

Although markets are not willing to correct, we are likely to see some in between reality checks like we saw Thursday and Friday too. Actually, the nifty is going nowhere, it’s only the broader market that is keeping the traders’ fraternity interested since the last few days. We have seen some robust moves in a bundle of stocks, which was clearly missing for more than a year in pre COVID time. So practically, they are compensating for their long underperformance. Although, there is no sign of weakness yet, we still believe that from here on one should avoid aggressive bets. We saw a cluster of resistances for nifty, which includes a ‘200-SMA’ on a weekly chart. Hence, anytime we can see some short-term profit taking in this space. With a broader view, any correction from here on is considered a healthy one but for momentum traders, its better not to get caught on the wrong foot. Overall market breadth is in favor of the bulls. The follow up move in the coming session will be important as if the momentum continues, then it will lead the index towards 11450 followed by 11650. These are the projections done by the reciprocal retracements of the recent corrective move. On the flipside, 11200-11100 will now be seen as an important support. Next week 27 august 2020 will be the expiry for F&O. so trade with caution.