NIFTY WEEKLY REPORT & VIEW FOR NEXT WEEK 10 AUGUST TO 14 AUGUST 2020

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WEEKLY RESISTANCE FOR NIFTY: 11300, 11400,11500

PIVOT POINT: 11200

WEEKLY SUPPORT FOR NIFTY:  11000, 10900, 10800

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 11250, 11350, 11430
PIVOT POINT: 11150

DAILY SUPPORT FOR NIFTY:  11100, 11000, 10900
DAILY CHART FOR NIFTY

Nifty started the trading for the week marginally negative above the 11050 mark. However, it corrected from the opening ticks itself and crept lower throughout the day to end below 10900, with a loss of over 180 points. The index started Tuesday’s session marginally positive in line with the global cues. However, the initial dip in first 15 minutes of trade was bought into and the index then rallied higher throughout the day to end with gains over 200 points. We had a v-shaped recovery on Tuesday to recoup Monday’s entire losses. Since the broader market was on a recovery mode; courtesy to decent rebound in banking stocks, the stage was all set for a positive start on Wednesday. Very much in-line with this, our markets opened higher and then continued its move northwards to surpass the 11200 mark in initial hours. However, all of a sudden, the Nifty took a complete nosedive not only to wipe off gains but also to sneak inside the negative terrain. After this, the market kept gyrating in a band of 90 points with some volatility to conclude on a flat note at 11100. We had a gap up opening on Thursday citing favorable cues from the global peers. Subsequently, the market slipped into a consolidation mode ahead of the RBI Monetary policy. The RBI eventually maintained its status quo and since there was no negative announcement, markets took it positively. Around the mid-session, strong buying emerged across the broader market and in the process, the Nifty went on to surpass the 11250 mark. However, once Nifty approached the sturdy wall of 11300, the bulls chose to take money off the table and due to weekly expiry, the volatility increased thereafter. Within no time, markets were significantly off highs. Fortunately, the selling got absorbed and the Nifty ended the weekly expiry precisely at 11200. Market ended flat on Friday as domestic coronavirus cases topped two million, taking the shine off market optimism following the central bank's relief measures for the economy. Most of the 11 major sectors saw moves of less than 1% in subdued trading, a day after a sharp rise thanks to the Reserve Bank of India's one-time loan restructuring scheme aimed at companies battered by the Covid-19 pandemic. India's coronavirus infections jumped by a daily record of 62,538 on Friday to 2.03 million, the world's third biggest caseload after the United States and Brazil.

NIFTY: A STRONG SUPPORT WILL BE @ 10800; STRONG RESISTANCE LEVEL SEEN @11300

Technically speaking, the nifty is still trapped in a range and till the time we do not see a decisive breakout outside the range of 11350-10880, we are likely to see such wild swings in-between. Before this, immediate resistance is at 11270 and the supports are placed at 11125-11065. But there is some encouraging takeaway of this price action, which is the outperformance of individual themes. We are witnessing some excellent moves in individual stocks and that is keeping the traders’ fraternity engrossed all the time.

TECHNICALLY SPEAKING.

Nifty had given a range breakout during mid-July above the resistance of 10890. After a move upto 11340 post the breakout, the index has seen a pullback move and is now back to that level. As per the role reversal technique in technical analysis, such previous breakouts usually act as support on pullback moves and this also coincides with the ‘200 SMA’ on the weekly chart. The index has ended in the vicinity of the support range of 11000-10900 and thus, we could again see some pullback if this support holds its importance. Below this, the weekly chart implies support around 10800 mark. However, one should also keep a tab on the Bank Nifty index without which a meaningful pullback in Nifty would be difficult. Traders are advised to avoid forming shorts at current zone as there are multiple supports seen. The weekly resistance in Nifty for the coming session is seen in the range of 11300-11500.