NIFTY PREDICTION FOR NEXT WEEK 23 AUG TO 20 AUG 2021

WEEKLY RESISTANCE FOR NIFTY: 16300, 16400, 16500

PIVOT POINT: 16200

WEEKLY SUPPORT FOR NIFTY:  16100, 16000, 15900

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 16300, 16350, 16400

PIVOT POINT: 16250

DAILY SUPPORT FOR NIFTY:  16200, 16150, 16100

DAILY CHART FOR NIFTY

The Asian markets were trading mildly negative yesterday but still our markets managed to start on a flat note. Nifty traded within a narrow  range  throughout  the  day  and  ended  with  marginal  gains above 16560.Nifty started Tuesday’s session  almost flat and  traded  within  a  narrow range till noon. It then gradually corrected and breached the 16500 mark due to weakness seen in Banking space and the broader markets. However, it was not done yet, we saw a sharp upmove in the last hour of the trade which propelled the index to a new milestone and ended above 16600. In spite of sluggish cues from the U.S. bourses, Nifty started the day on a positive note on Wednesday and hit a new milestone of 16700. However, post the initial hour of the positive activity, the index gradually corrected from the highs for rest of the session and ended with a loss of over a quarter of a percent below 16600. The market was closed for trading on Thursday  August 19 on account of Muharram. Market ended deep in the red on August 20 but Nifty managed to defend 16,400. At close, Sensex was down 300 points at 55329, and the Nifty down 118 points at 16450.

NIFTY: A STRONG SUPPORT WILL BE @ 16200; STRONG RESISTANCE LEVEL SEEN @ 16700

Index opened Friday with a strong gap down on weak global cues and closed a day at 16400 with loss of nearly 1%. The index reached to its previous breakout zone & going forwards it will act as good support zone 16300-16200, if managed to hold above-mentioned support zone then one can expect a good bounce towards immediate resistance zone of 16600-16700 zone where one can again lock their longs gains on immediate basis also on overall basis 16500 zone will act as make or break zone on the higher side.

TECHNICALLY SPEAKING.

Indian benchmark had a cautious start on 20 aug 2021 with slight negativity in the market around level of 16500 as there is a fall in crude oil price in Asian markets. The recent weakness in Asian equity markets is also partly driven by the strengthening of the US dollar as the market prepares for the gradual reduction of monetary stimulus. A Wall Street brokerage has warned of a 9 % near-term correction for the equity market, saying the “street has only limited runway to continue the rally” that began in the second half of last year. The benchmark index Sensex has added a whopping 6,000 points since January and touched 56,000 on Wednesday. Following the pandemic mayhem, the stock market tanked over 35 % in March 2020. It has rallied over 118 % since then and after scaling 50,000 in January, the Sensex has peaked the 56000-mount earlier this week. We expect the markets to correct near-term to the tune of 9% . Our Nifty target is 15,000 by December implying a 9% potential downside near-term. Market looked a bit tentative in the first half of the week, especially the broader market as we witnessed a healthy correction in NIFTY MIDCAP 50 index. At one point, it was on the cusp of violating recent swing lows but fortunately it got its mojo back slightly and managed to recover fair bit of ground towards the end. Going ahead, things are going to get tougher because from hereon we are likely to see lot sector churning every now and then. Nifty has reached 16400  without the participation of banking space, which is hard to believe. So it would be interesting to see how things pan out going ahead. Also, it would be unfair to expect the similar pace from Nifty to reach new millstones. Since there is no sign of weakness, we are not advising to go against the trend but we reiterate when things start to look hunky dory everywhere, wise traders choose to take some money off the table. The  immediate supports for Nifty are placed around 16300 and 16000 while levels around  16700  and  16900  are  to  be  considered  as  immediate resistances.  Since there are no reversal signs  on the index, one should  avoid  taking  contra  calls  on  the  index  and  rather  be  very selective in picking stocks for trading. Also, since we are witnessing such divergence in broader markets, traders should avoid leveraged positions and also book timely profits on long positions. In terms of technical, the stock is trading well above the short- and long-term moving averages. Pricewise, the stock has formed an inverted head and shoulders pattern, which projects a bearish-to-bullish trend reversal. The reversal pattern is formed after a downtrend and its completion marks a trend reversal to the uptrend. Inverse Head and Shoulders is a bullish bottoming out pattern. For the last couple of weeks stock has been consolidating at breakout level and closed at a new high above the breakout level. Moving average convergence and divergence (MACD) indicator has given positive crossover with its average on the monthly chart indicating long term shift in trend. Technically, the Nifty index has confirmed a breakdown of the Dark Cloud Cover Candlestick pattern, which indicates some correction in the counter. A momentum indicator turned lower from the overbought zone while Stochastic has suggested negative crossover. However, on the four hourly charts, the index has settled above 21-EMA, which acts as immediate support for the counter. At present, the nifty index is finding the key resistance at 16700 levels while immediate support is at 16200 levels.