NIFTY WEEKLY PREDICTION & NIFTY TIPS FOR 21 DEC TO 25 DEC 2020

WEEKLY RESISTANCE FOR NIFTY: 13800, 13900,14000

PIVOT POINT: 13700

WEEKLY SUPPORT FOR NIFTY:  13600, 13500, 13400

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 13775, 13825, 13875

PIVOT POINT: 13750

DAILY SUPPORT FOR NIFTY:  13700, 13650, 13600

DAILY CHART FOR NIFTY

The merry run continues across the globe and it’s been nearly one and half months now, markets are just continuing their gravity defying moves. This week, our markets kickstarted the week on a flat note but immediately resumed its upward momentum. For the subsequent two trading sessions, the rally continued and in the process, Nifty kept posting new record highs one after another. The similar sort of one sided move was missing in the latter half of the week as markets saw some volatile swings to test the 13800 mark. Our markets started the week marginally higher following the positive global cues. However, the index consolidated within a range for most part of the day and managed to close with gains of one-third of a percent. Tuesday global markets witnessed some correction and in line with that, Nifty was hinting at a probability of negative opening. However, the indices opened on a flat note and then corrected in the first couple of hours upto 13450 mark. But once again, the intraday day dip got bought into and we then witnessed a smart recovery in the later half to erase all losses and end the day on a flat note. Wednesday the U.S. markets ended with gains of over a percent and the Asian markets too were trading with a positive bias in morning. These positive cues from the global markets led to a gap up opening in Nifty to continue to post new record and end with gains of over 100 points at 13683. Thursday We had a positive start on the indices above the 13700 mark for the first time and it continued its positive bias to end the weekly expiry with gains of about half a percent. Friday market benchmarks  sensex and nifty were trading volatile on Friday. Sensex was hovering around 46900, while Nifty was ruling above 13500.

NIFTY: A STRONG SUPPORT WILL BE @ 13600; STRONG RESISTANCE LEVEL SEEN @14000

The short-term trend of Nifty continues to be rangebound with a positive bias and a similar type of movement is expected in the coming session. The upside target for the Nifty remains around 13,900-14,000 levels, which corresponds to multiple long-term trendline resistance. Immediate support is placed at 13600.

TECHNICALLY SPEAKING.

Nifty managed to close tad above 13750 on Friday with weekly gains of nearly two percent. This week, our markets reached yet another milestone of 13750 with ease and few heavyweight themes did well to guide markets at new record highs. Since we are trading in an uncharted territory, sky's the limit for our market; but in our sense, we have now reached the extreme zone, at least for the current vertical move. With a broader view, 14000 and beyond levels are very much possible, but for a time being; 13500 - 13600 are the extreme levels as per few key Fibonacci ratios. Let's see why these levels are considered important. The 'Golden Ratio' (161%) on the 'Price Extension' of the recent previous up move is placed at current levels. This level coincides with the 200% ‘Price Extension’ of the first up leg from March lows. More importantly, if we connect all important highs from March 2015 on the monthly chart, we can see a 'Multi-year Upward Sloping Trend Line' precisely converging around the same levels. Hence, some cooling off around this crucial junction cannot be ruled out. Yes, we agree to the fact that a strong trend up or down, doesn't necessarily follow any theory. But there is no harm being a bit conservative at times. Hence, since the last 3 - 4 days, we have been continuously advising booking profits in the rally and avoiding aggressive bets overnight. On the daily chart, we can now see a ‘Dragonfly Doji’ pattern and with the last two day’s intraday swings, 13500 has become a crucial support. The moment Nifty slides and sustains below this point (which is possible anytime soon), we would see the market experiencing some decent profit booking towards 13300 – 13000 in days to come.