NIFTY WEEKLY PREDICTION & NIFTY TIPS FOR 28 SEP TO 1 OCT 2020

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WEEKLY RESISTANCE FOR NIFTY: 11100, 11300,11500

PIVOT POINT: 11000

WEEKLY SUPPORT FOR NIFTY:  10900, 10700, 10500

WEEKLY CHART FOR NIFTY

 

DAILY RESISTANCE FOR NIFTY: 11100, 11200,11300

PIVOT POINT: 11025

DAILY SUPPORT FOR NIFTY:  10975, 10900, 10800

DAILY CHART FOR NIFTY

It was one of the worst weeks for our markets in the recent past as the indices corrected sharply along with the broader market. There was no respite for any of the index as all the sectors, including the recent out performers took a sharp knock. Our markets started the week around the previous week’s close. The index traded within a range till noon, but it then corrected sharply on back of sell-off in the global markets and ended with a cut of over a couple of percent at 11250. Nifty started the Tuesday’s session marginally positive; however, it was mere a formality as we immediately witnessed correction and within first half an hour, Nifty sneaked below 11100. The index gradually pulled from the lows, but the bears continued their dominance and the pullback move was sold into to eventually end the day with a loss of about 100 points around 11150. On the back of positive global cues, we started the Wednesday’s session on a positive note, but once again our markets witnessed selling pressure and corrected by about 200 points from the opening level. However, we recovered some of the losses in the last hour of trade and ended the day marginally in the red. The negative global cues weighed down heavily on our markets on Thursday as the Nifty opened gap down and then corrected throughout the day to end with a loss of almost 3%. Friday the market witnessed correction as sentiments soured on Fed comments on weaker-than-expected economic recovery, increase in fresh Covid-19 cases in developed markets and on concerns of higher-than-expected credit costs in the banking sector in the near term. 

NIFTY: A STRONG SUPPORT WILL BE @ 10800; STRONG RESISTANCE LEVEL SEEN @11500

During the first half of the week, we participated in an upward move but towards the fag end, we once again turned a bit cautious as we still believe that Nifty doesn't have enough strength to go pass the sturdy wall of 11300-11500 soon. We must either go through some time wise or price wise correction before heading towards the 12000 mark. To add to this opinion, we observed a 'Bearish Wolfe’ pattern on the chart . The said pattern proved its worth as we witnessed some hiccups towards the latter part. Since, the overall undertone is strongly bullish, as of now there are no signs of complete sell off, rather it can be interpreted as a small profit taking within the consolidation. For the coming week, 11300-11500-11700 remains to be a cluster of resistance; whereas on the lower side, 10800-10600 are to be seen as crucial supports. Any aggravation below these points would result in an extended correction in our market.

TECHNICALLY SPEAKING.

The index has already been in a corrective phase since the start of this month and Nifty has breached its supports one after another. Nifty has now approached its ‘200 DMA’ around 10750 which is another important support. However, as of now there are no positive signs and hence, we continue with our cautious approach on the markets. There could be some pullback from here as we have approached the ‘200 DMA’ which coincides with some important retracement levels as well. However, markets are likely to face selling pressure on pullback moves and hence, one should avoid any aggressive contra trades. The ‘Dollar Index’ which we had recently highlighted for its breakout has moved higher which too is not good for the equity markets. We have been cautious on the market recently and our strategy to remain light on trading positions has played out well so far. Now, the index is near to its immediate support zone of 10800- 10700. On the flipside, 11200-11300 remains an immediate resistance zone. The index could consolidate within this range in next couple sessions and we could also see some swings within the range on the weekly expiry day. Hence, we continue to advise traders to avoid aggressive positions and watch for further developments. In the last four weeks, we had a couple of reality checks which we believe to be seen in-between the moves going forward. Hence, one needs to remain cautious and should ideally avoid aggressive bets overnight. Banking space continues to be a spoilsport and in fact, Friday's correction was solely led by banking stocks as the Bank Nifty slipped below the key support of 21000 during the week. Hence, one needs to keep a close track on how this heavyweight space behaves in the first half. Despite all this, we must accept that it was a week of various individual themes and stocks. IT had a great move in the initial part and the latter half was completely dominated by the mesmerizing move in the Pharmaceutical universe. The way some of the stocks within this space just took off, it was remarkable. One can still look to participate in such potential movers; but should adopt a proper risk management strategy.