NIFTY WEEKLY PREDICTION & NIFTY TIPS FOR 2 NOV TO 6 NOV 2020

TO GET LIVE TRADING TIPS WHATSAPP ON 9039542248

WEEKLY RESISTANCE FOR NIFTY: 11700, 11900,12100

PIVOT POINT: 11600

WEEKLY SUPPORT FOR NIFTY:  11500, 11400, 11300

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 11680, 11750,11800

PIVOT POINT: 11625

DAILY SUPPORT FOR NIFTY:  11550, 11500, 11450

DAILY CHART FOR NIFTY

Our markets started the proceedings for the October expiry week on a muted note owing to sluggish global cues. However, as the day progressed, the trend became cautious on the back of global jitters, especially from Europe. Due to the broad based selling for the major part of the session, the Nifty went on to almost kiss the 11700 mark. Fortunately, the fall got arrested in the last hour to restrict correction slightly over a percent. Tuesday Bulls took centre stage today led by Financials as Kotak Bank led from the front buoyed by MSCI review. Afternoon trade witnessed FMCG taking control ably supported by cement stocks. Broader markets also saw participation across select counters.  Benchmark indices regained some of the previous session losses and ended higher with Nifty above 11,850 supported by the Bank Nifty and Pharma names. At close, the Sensex was up 376 points at 40522, and the Nifty was up 121 points at 11889. Wednesday the Sensex plunged below the 40,000 level and the Nifty50 index broke the 11,800 level. The benchmarks underperformed due to the heavy selling in the financials. Index heavyweights HDFC and ICICI Bank remained the top contributors behind Nifty's fall today. Both stocks traded over 3% lower. Thursday market ended lower for the day but gained in the October expiry series. The Sensex ended 173 points to 39749 while the Nifty50 index ended at 11670, down 59 points. Friday the Sensex dipped 250 points to 39520 levels. The index hit an intra-day high and low of 39988 and 39242, respectively. The broader Nifty also gave up the 11600-mark. 

NIFTY: A STRONG SUPPORT WILL BE @ 11500; STRONG RESISTANCE LEVEL SEEN @12000

we witnessed some choppy moves but the overall bias remained positive. In fact, we had mentioned how multiple technical indicators are in favour of bulls. All those observations still remain valid as long as we hold strong as well as crucial support zone of 11500 - 11300. Below this the short term trend reverses and hence, one should avoid aggressive longs in the market thereafter. Till then interpret this as a reaction to global development and stay hopeful for recovery. For the coming session, 11800 followed by 12000 would be seen as immediate resistances.

TECHNICALLY SPEAKING.

let’s dig into a bit of technical’s and understand why 11500 – 11300 is considered to be a strong as well as crucial support zone. If we connect all major highs from record highs in a descending order, the trend line / pull back support comes around this level, which coincides with the 20-day EMA as well. Hence, as long as this support is not violated, one should adopt a buy on dips strategy. A close below 11500 – 11300 would result in a short term trend reversal and hence, traders should start lightening up positions after it. Before this, intermediate supports are at 11820 – 11775. Now, we are tad below 12000 and if we have to pre-empt any direction, we expect the Nifty to surpass 12000 – 12050 levels in coming days to head towards 12200 – 12400. If we are anticipating this to happen then there has to be some technical evidences to back this hypothesis and they are as follows: 1) The ‘RSI-Smoothened’ for Nifty on weekly time frame chart has started moving northwards after entering a bullish territory above the 70 mark, which is likely to provide impetus, 2) After a long underperformance, banking started to show inherent strength and as we all know when financial starts participating in any rally; it is to be considered the robust one. To add to our conviction, the ‘ADX 14’ indicator on the daily chart is moving northwards after surpassing the 25 mark. This development generally unfolds a big trended move, 3) The undercurrent is strong and we are seeing different sectors participating one after another and the way midcap index is poised, another percent up move from hereon would confirm a strong breakout in ‘Nifty MIDCAP 50’ index. So, considering all this, odds are very much in favor of the bulls. But since we are approaching a mega global event (US Presidential election), we may see some volatility increasing and hence, keep a regular tab of all above mentioned levels.