NIFTY WEEKLY OUTLOOK & REPORT NEXT WEEK 14 SEP TO 18 SEP 2020

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WEEKLY RESISTANCE FOR NIFTY: 11600, 11800,12000

PIVOT POINT: 11400

WEEKLY SUPPORT FOR NIFTY:  11300, 11200, 11000

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 11500, 11600,11700
PIVOT POINT: 11450
DAILY SUPPORT FOR NIFTY:  11400, 11300, 11200
DAILY CHART FOR NIFTY

Nifty started trading for the week on a flat note, but it corrected in first half an hour and registered a low around the 11250 mark. It then recovered gradually and oscillated within a range throughout. An upmove in the last half an hour resulted in the index closing tad below the high point of the day with marginal gains. Tuesday Nifty started the session marginally positive yesterday and attempted a pullback move with the support of IT heavyweights. However, the bears took the charge in the latter half of the day and the index corrected sharply in the last hour to end with a loss of one third of a percent. The U.S. indices corrected sharply overnight which had a negative impact on the opening for our markets on Wednesday. Nifty opened with gap down around 11220 and it corrected gradually to sneak below the 11200 mark. However, the broader markets witnessed buying interest in the later half which led to a recovery and the Nifty recovered much of the losses to end tad below 11300, with a loss of about 40 points over Tuesday’s close. After the sharp sell-off in three trading sessions, the U.S. markets rebounded sharply which had a positive impact on our markets at opening of Thursday. Nifty opened gap up and continued the upmove towards the intraday resistance of 11450. The decline from there was bought into and the index resumed the momentum in the last hour to end the weekly expiry day around the high point with gains of one and a half percent. Friday market remained cautious about adverse news-flows of COVID-19 vaccine trials, an increase in Sino-India geopolitical tensions and a sharp sell-off in US equities. Recent data shows some up-tick in activities as suggested by e-way bills data, railway freight data and digital banking transactions, even as daily COVID-19 cases continue to increase. sensex closed week at 38854 and Nifty closed at 11464.

NIFTY: A STRONG SUPPORT WILL BE @ 11000; STRONG RESISTANCE LEVEL SEEN @11700

As far as index levels are concerned, Monday’s low of 11000 (Wolfe wave support) followed by 11250 (potential reversal zone of ab=cd harmonic pattern on the chart) are the supports for Nifty, whereas immediate resistances are seen around 11500 and 11700.

TECHNICALLY SPEAKING.

Post the recent correction from the highs, Nifty had shown some signs of pullback from its support of the ‘Wolfe Wave’ pattern. The Reliance took the leadership to pull the markets higher. The momentum clearly has changed again in favor of the bulls and hence, we could see more upside in the near term. The immediate resistance for the index is now seen around 11500 (higher end of the recent downside gap) followed by the swing high of 11700. On the flipside, immediate supports for Nifty are now placed around 11200 and 11000. As per the pattern on the weekly chart, the indices have probably entered into a corrective phase which could be a price wise or a time wise correction. However, since it is just a corrective phase within an uptrend, there would be stock specific trading opportunities on both the sides of the trade. Short-term traders are advised to capitalize on such opportunities, but trade with a proper exit strategy as well.