NIFTY WEEKLY PREDICTION & NIFTY TIPS FOR 19 OCT TO 23 OCT 2020

WEEKLY RESISTANCE FOR NIFTY: 11800, 12000,12200

PIVOT POINT: 11700

WEEKLY SUPPORT FOR NIFTY:  11500, 11300, 11100

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 11800, 11900,12000

PIVOT POINT: 11700

DAILY SUPPORT FOR NIFTY:  11600, 11500, 11400

DAILY CHART FOR NIFTY

Trading for the week started with a good upside gap as indicated by the Nifty early in the morning. Within the first five minutes of trade, Nifty conquered the milestone of 12000, which is the outcome of the stupendous recovery from the March lows in such a short span. In fact, in the last couple of weeks also, we had a remarkable rally after testing the 200-day SMA around 10800. Post the initial hour, the market witnessed some profit booking at higher levels, which was then followed by a consolidation to conclude the day on a flat note. Tuesday morning, global cues were sluggish and hence, we had a flat opening in the absence of any triggers. Subsequently, Nifty vacillated within the narrow band of 11900 – 12000 throughout the remaining part of the session. In fact, the overall movement was so choppy; the market was unable to hold any direction. Eventually, the day ended on a muted note and Nifty managed to hold the 11900 mark convincingly. Wednesday, global cues were a bit subdued early in the morning and despite this, our markets opened lower and then extended losses as the day progressed. The weakness was mainly led by the IT counters that were experiencing heavy profit taking after a recent relentless run. Then banking joined hands to drag the markets lower. But all of a sudden at the stroke of the penultimate hour, markets just took off and financials were the major charioteer to this late surge. Eventually, Nifty not only recouped losses but also ended well inside the positive territory. Despite unfavorable global cues, we kick started the Thursday session at the seven month high above 12000. However this gap up opening turned out to be a formality as we came off sharply in the initial trades. Markets stabilized from the hiccup; courtesy to complete recovery in banking stocks. Once again, this rebound got sold into which then became a nightmare for the bulls post the midsession as markets took a complete nosedive on the fears of a second wave of coronavirus hitting major European countries. This resulted in a similar trading session we witnessed on 31st August to mark more than a couple of percent losses.

NIFTY: A STRONG SUPPORT WILL BE @ 11500; STRONG RESISTANCE LEVEL SEEN @12200

As far as levels are concerned, the base has shifted higher and the previous resistance area of 11700 – 11800 should now be treated as a strong support. On the flipside, we are very much close to the psychological mark of 12000. The moment it’s taken out, we may see a steady move towards 12200 – 12400 levels. Since, the banking index is back to 200-day SMA on the daily chart and the way it closed with complete gush in the space, a move beyond 24000 would provide strong support to the benchmark index. However, we would like to highlight that since the move is extremely swift, anytime we can see some intraday profit booking and hence, one needs to position accordingly and be very fussy in stock selection.

TECHNICALLY SPEAKING.

In the last couple of weeks’ rally, global markets played the major part as we are seeing some gravity defying moves despite some in between uncertainty. Initially, in our recovery mode, we were a bit skeptical but in the first half of the week, we had to admit the miss and eventually started participating in the move. The way Nifty surpassed the 31st August high of 11794 with some authority and is now within the kissing distance of 12000, the positivity is likely to extend further. Importantly, the banking space which was following the benchmark in the entire recovery finally showed some dominance on Friday. This factor is very much in favor of the bulls, which may provide impetus for the extended rally. it will be then considered as a healthy rally. Let see how things pan out in the next couple of sessions.  ‘Bearish Engulfing’ pattern at the top was something very similar to what Nifty50 witnessed on August 31 at the 11,800 level. August’s candle was followed by a significant decline in the index towards the 10,800 level, he said.