NIFTY PREDICTION FOR NEXT WEEK 9 AUG TO 13 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

Nifty started the August month & new trading week with a gap up of over 100 points as indicated by the SGX Nifty. However, the index then consolidated within a range throughout the day and ended tad below the 15900 mark. Nifty started the Tuesday session on a positive note and surpassed the hurdle of 15970 after a long consolidation. It conquered the 16000 level and achieved a new milestone which led to a buying interest in the index heavyweights. The momentum continued throughout the day  and the index  ended  the  day  well above  16100 with  gains  of over one and a half percent.Post creating new records on Tuesday, Nifty started the Wednesday with a gap  up  around  16200  and  maintained  a  positive  bias  throughout the day. The upmove was mainly led by the banking heavyweights and Nifty managed to end the day above 16250 with gains of eight-tenths of a percent. Last couple of sessions before the weekly expiry turned out to be cheerful for the bulls, but the index consolidated within a narrow range on the expiry day and ended tad below 16300 with marginal gains.

NIFTY: A STRONG SUPPORT WILL BE @ 15900; STRONG RESISTANCE LEVEL SEEN @ 16500

Nifty finally came out of its consolidation phase and surpassed the 16300  mark which the market participants were awaiting for. As the index  breached  this  hurdle,  good  buying  interest  was  seen  in  the large  cap  stocks  which  pushed  the  index  higher  by  the  close.  The buying interest in the heavyweights certainly bodes well for the bulls and in the later part of the day, the banking space was buzzing and showed signs of  a  catch  up  move.  If  the  banking  sector continues to gain strength, then it would provide impetus to Nifty as well  which should lead to  further up move in the near  term. However, since the market has entered uncharted  territory, it is better  to take  one  step  at a  time  and focus on  pockets  which  are gaining strength. As far as index levels are concerned, 16300-16500 are the next levels to watch on the higher side, while the support base now shifts higher to 16100-15800

TECHNICALLY SPEAKING.

RBI has maintained the accommodative stance indicating that the primary focus area remains growth and economic recovery is more critical than inflation. This was on expected lines as RBI has been demonstrating sustained commitment to growth. The September and December quarters are critical given the risk of third wave of COVID-19 and RBI has implemented proactive measures to maintain adequate liquidity in the system.  The markets are in strong bull phase indicating significant confidence on India’s growth prospects and RBI’s policy stance extends a strong support to it. The expected levels of the market are likely to be in the range of 16200 and 16500, and it is going to be crucial for the short-term market scenario to sustain above the 16200 Nifty50 Index level. The momentum indicators like RSI and MACD indicating a positive outlook to continue. The Nifty took a breather today which is possibly due to the weekend knocking on the doors. The overall trend of the market continues to remain bullish and any dip or correction should be utilized to go long. 16300 is the short term resistance which was crossed yesterday and today as well. If we can keep above that level, the index should zoom to 16500-16600.