Friday, August 13, 2021

NIFTY PREDICTION FOR NEXT WEEK 16 AUG TO 20 AUG 2021

WEEKLY RESISTANCE FOR NIFTY: 16600, 16700, 16800

PIVOT POINT: 16475

WEEKLY SUPPORT FOR NIFTY:  16375, 16275, 16175

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 16550, 16600, 16650

PIVOT POINT: 16500

DAILY SUPPORT FOR NIFTY:  16450, 16400, 16350

DAILY CHART FOR NIFTY










The journey of Sensex from 50,000 to 55,000 has been a remarkable feat due to the fact that it took only 7 months for the Sensex to rise 5,000 points.Sensex topped 50,000 mark for the first time on January 21, 2021, in intraday trade. After that it took just 10 sessions to hit 51,000 mark on February 5, and 6 sessions to hit 52,000 mark on February 15.It took slightly longer to rise for another 1,000 mark as that was the time when India was witnessing the devastating second wave of the coronavirus pandemic.Sensex took 85 session to rise from 52,000 to 53,000 on June 22, 2021. After another 30 seesions, Sensex was at 54,000 mark on August 4 and after just 7 sessions, on August 13, Sensex hit the milestone of 55,000.As many as 31 stocks from the BSE 500 index more than doubled during Sensex's journey from 50k to 55k while three stocks - Happiest Minds Technologies, JSW Energy and Balaji Amines surged between 207-281 %. Despite SGX Nifty was indicating a sluggish start, our markets started the week on a positive note. On the moday Nifty extended the lead by surpassing the 16300 mark. On Tuesday The Nifty was indicating a sluggish start early in the morning; but once again we shrugged off these cues and opened with a small upside gap. As the day progressed, the buying in some of the heavyweights picked up, resulting in marking a new high of 16359 in Nifty. On Wednesday session was a replica of Tuesday’s price action as we saw a positive opening first which was then followed by some profit booking around the midsession. However the latter half once again becomes the savior for the bulls. Market saw a smart recovery. On Thursday the weekly expiry day, we kick started marginally higher owing to favorable global cues. In the initial trades, market saw some mild corrective move; but within few following minutes, things stabilized as the market resumed it northward trajectory. In the remaining part of the session, Nifty continued its gradual up move to register new all.  Market rallied 1% hitting fresh record levels led by the IT, metal and FMCG names. At close, the Sensex was up 593 points at 55437, and the Nifty was up 164 points at 16529. 

NIFTY: A STRONG SUPPORT WILL BE @ 16300; STRONG RESISTANCE LEVEL SEEN @ 16800

We can expect the next level of the Nifty to be 16600-16700. Since the undercurrent is bullish and the momentum is fierce, a buy-on dips approach can be implemented for higher targets

TECHNICALLY SPEAKING.

The bulls continued to dominate as the benchmark indices scaled to new highs led by strength in IT majors. The mood was upbeat from the beginning, thanks to favourable global cues and supportive macroeconomic data viz. IIP and CPI inflation.. Amongst the sectors, except Realty and Healthcare, all the other indices ended with gains. The broader indices underperformed as both midcap and smallcap ended in the red. Markets are taking comfort from the upbeat global markets and supportive domestic cues amid the fear of a third COVID wave. However, we’re now seeing restricted participation and expect the same trend to continue, at least in the near future. We thus advise continuing with the “buy on dips” approach but focus largely on index majors and select midcaps for long trades. The market witnessed the continuation of the positive trend, after sustaining above the level of 16350. The market has breached an important resistance level of 16550. If the market sustains above the level of 16550, the market expects to gain momentum, leading to an upside projection till 16750-16850 level. The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.

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