NIFTY WEEKLY PREDICTION & NIFTY TIPS FOR 17 NOV TO 20 NOV 2020

WEEKLY RESISTANCE FOR NIFTY: 12800, 12900,13000

PIVOT POINT: 12700

WEEKLY SUPPORT FOR NIFTY:  12600, 12500, 12400

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 12750, 12850,12950

PIVOT POINT: 12650

DAILY SUPPORT FOR NIFTY:  12580, 12530, 12450

DAILY CHART FOR NIFTY

Monday’s gap up open around record highs was clearly a cheerful reaction to the final verdict that came over the last weekend. Post the initial opening, markets extended the lead marginally and then witnessed some profit booking for nearly a couple of hours. However, since the overall undertone is still so strong, this small intraday dip was bought into to drive the Nifty to a new high of 12474. With Monday’s up move, Nifty has added another one and half a percent to the bulls’ kitty. Monday evening, global markets, especially Dow futures, just blew out after the news of advancement of COVID - 19 vaccines. At one point, NIfty was indicating levels beyond 12800. But this euphoria subsided towards the close of US markets and hence, tracking some nervousness early in the Tuesday morning in DOW futures, our market was less excited at the opening. We still managed to open nearly eight tenths of a percent higher and ended the session well above the 12600 mark. Quite similar to the recent trend, our markets started Wednesday on a positive note however after the first hour of trading the broader markets started witnessing profit booking that pulled Nifty lower into the negative territory. Eventually, this dip got bought into for Nifty to retest its morning highs and to end with gains of 0.93% tad at 12750. Thursday morning, the global peers looked a bit nervous and hence, we had a sluggish start to the trade. Till the midsession, markets corrected marginally but it was more of a sideways movement with mildly negative bias. However, as the Finance Minister’s press conference started, we witnessed some weakness to sneak below the 12650 mark. Fortunately, the market started to rebound from a kissing distance of 12600 post the press conference and eventually, ended the session with less than half a percent cut.The benchmark indices rebounded after a day of profit booking and closed marginally higher on November 13, ahead of muhurat trading tomorrow. Nifty closed friday above 12700 mark.

NIFTY: A STRONG SUPPORT WILL BE @ 12500; STRONG RESISTANCE LEVEL SEEN @13000

This week we had a breakout with a ‘Breakaway Gap’ which is followed by two back to back gaps, which can be termed as ‘Runaway Gaps’. Such development happens in an extremely optimistic environment and hence, the rally is likely to continue first towards 12800 – 13000. On the flip side, the immediate support shifts higher around 12600 – 12400.

TECHNICALLY SPEAKING.

Finally, after eight days of marathon rally, the market ended its winning streak. One shouldn’t be too wary about it, because most of the events are behind us and technically, markets were a bit overstretched. So, some sort of breather was very much on cards. In fact, with reference to our previous article, we had mentioned how Nifty precisely met with its initial target of ‘Bullish Flag’ pattern around 12800 – 13000. But by no means, we expect a big price correction from here on, rather any decline is an opportunity to go long with a short to medium term view. Market generally experiences either ‘Time’ or the ‘Price’ correction. Looking at the recent development, we would rather expect the first scenario where we may see benchmark spending some time in a band of 400 – 500 points before resuming its northward trajectory. As far as levels are concerned, 12800 – 13000 remains to be immediate levels in the upward direction; whereas on the lower side, 12600 followed by 12400 are likely to provide decent support for the coming session. Market continues its spectacular run and this recent rally from 11500 has its own unique characteristic. It sailed through smoothly in the midst of the uncertainty, such a huge event effortlessly and this is very seldom to experience. Fortunately, we stood firmly and were hopeful around recent swing lows and in fact as we progressed last week, things were pretty clear in the latter half that the market is not going to stop soon.