NIFTY PREDICTION FOR NEXT WEEK 26 APRIL TO 30 APRIL'21

WEEKLY RESISTANCE FOR NIFTY: 14400, 14600,14800

PIVOT POINT: 14300

WEEKLY SUPPORT FOR NIFTY:  14200, 14000, 13800

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 14375, 14475, 14575

PIVOT POINT: 14325

DAILY SUPPORT FOR NIFTY:  14275, 14175, 14075

DAILY CHART FOR NIFTY

This week trading begin on bearish note. Bears returned to Dalal Street and dominate Monday’s trading session, pulling down the market sentiment. market ended lower on April 19 amid fears of impact of the second wave of Covid-19 and the consequent lockdowns on the economy. Nifty has formed a second down gap in 5 days signifying the underlying weakness. However, the close today was near the intraday high thereby making a hanging man type of formation. This could mean some more upside recovery in the near term. However, at higher levels, markets will keep seeing repeated selling given the impact of Covid second wave on businesses and the economy. The Sensex closed 882 points lower at 47949 while the Nifty dived to close at 14359. Bears wreaked havoc on equity markets pulling down almost all segments of the market. The Delhi government on Monday announced a six-day lockdown in the capital city, after Covid cases there out numbers every other city in the country. Tuesday’s volatile session ended on bearish note. Nifty closed the day below 14300 mark at 14296 lower by 63 points sensex closed the day at 44705 down by 243 points. Indices were dragged down by selling in IT, financials and FMCG stocks. Wednesday market was closed on occasion of ram navami. On Thursday After opening on bearish note bulls shown some strength & took market above 14400 & closed the day 109 points up at 14406. The Sensex closed 374 points higher at 48080 Bank stocks came back from the lows with ICICI Bank gaining 3.6% to end as the top Sensex gainer. It was followed by HDFC, Bajaj Auto, and HDFC Bank. Titan, Hindustan Unilever and Asian Paints were the top drags. Volatility inched higher and closed above 23 levels. Bank Nifty was the top sectoral gainer. Amid increasing covid-19 cases, the domestic market recovered from its early losses backed by positive cues from global markets. The market has been going through a correction phase following increasing covid cases, in spite of the optimism due to vaccination drives. Though earnings outcome is expected to have stock-specific movements in the coming days, broader movement in the market will depend on fall in covid cases. On Friday Sensex closed 202 points, lower at 47878 while the Nifty closed 65 points down at 14341. Markets sought to ignore a potential hike in US capital gains tax to nearly 43% for wealthy individuals. The result was a bounce from opening lows, but the optimism as such could not sustain and profit booking emerged as Nifty approached the 10-day exponential moving average. Traders seemed reluctant to carry overnight gains into the weekend, amid rising COVID-19 numbers

NIFTY: A STRONG SUPPORT WILL BE @ 14200; STRONG RESISTANCE LEVEL SEEN @ 14500

The market failed to show resilience to stay above 14,400. While it is subject to further price action evolution, the technical factors are aligned to support a lackluster market movement going forward.  Any corrective wave down should find support around 14200 -14000. Traders should refrain from building a fresh buying position until we witness a correction till 14200 -14000 or a breakout above the 14500.

TECHNICALLY SPEAKING.

he focus of the investors and nation has shifted to sudden rise in Covid cases. The central government has said that they don’t intend to announce national lockdown to control the Covid infection and has also advised State governments to use lockdown as last measure. However, many states have announced varied degrees of restriction on movement of people depending on the severity of the situation in their region. This is expected to impact the economy in this quarter and there have been downgrades to India’s growth in FY22 by upto 1%. The pace of vaccination will be crucial for quicker normalisation of economic activity. The corporate have started announcing results for the March quarter and there are no major disappointments so far. Consensus is expecting sharp increase in net profit due to the Covid-led disruption in the base quarter. It will be important to observe comments of Banking and domestic consumer oriented companies about impact of recent surge in Covid infection on their business.  Nifty is trading at 21 times 1 year forward EPS, which is close to all time high. Hence upside from valuation rerating is limited and one needs to watch if there are any earnings downgrade due to emerging Covid situation. We have seen the recovery in the market from the level of 14200 yesterday and we expect the market to continue to sustain the level and continue the rally till the level of 14,500-14700. The market could range in between the levels of 14200 -14500 as the uncertainty looms in the market. On the sectoral front, the market has been mixed with no clear direction though the power sector has gained some momentum and has helped the market to stay positive.