NIFTY PREDICTION FOR NEXT WEEK 1 NOV TO 4 NOV 2021

WEEKLY RESISTANCE FOR NIFTY: 17800, 18000, 18200

PIVOT POINT: 17650

WEEKLY SUPPORT FOR NIFTY:  17500, 17300, 17100

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 17750, 17850, 17950

PIVOT POINT: 17650

DAILY SUPPORT FOR NIFTY:  17550, 17450, 17350

DAILY CHART FOR NIFTY

Monday morning, the global set up was good and in fact we over surpassed SGX Nifty by kick-starting the week well above the 18200 mark. However, Nifty immediately erased all gains in the following ticks and due to aggravated selling in few heavyweights, we slid below the psychological level of 18000 in the opening hour itself. Things did not look good at one point but fortunately the oversold market started rebounding from lower levels to again reclaim the opening levels. During the second half, index remained in a small range to conclude the session on a flat note. The global markets were indicating a positive start on Tuesday and in line with, our markets had a gap opening by a small margin. In the initial trade, we moved higher towards 18200 which got sold into immediately. Market slipped towards 18100 around the mid session but fortunately after couple of indecisive swings, we started marching higher towards the fag end of the session. As a result, the Nifty finally had some bounce back to end tad below 18300. Markets had a quiet start on Wednesday with mildly positive bias despite SGX Nifty was indicating a gap down opening by nearly 50 points. After consolidating around 18300 for nearly two hours, Nifty extended its gains towards 18350. It was once again followed by some choppy trades in a small band after the mid-session. However as we stepped into a final hour of the session, the heavyweight stocks started becoming a bit nervous, which eventually resulted in a sharp decline to conclude around 18200 with nearly three tenths of a percent cut. Despite Nifty was indicating a flat opening on Thursday, our markets started the day slightly lower and aggravated the selling right from the word go. In the initial hour we slid below 18100 and then as the day progressed, the bears thrashed all key supports one after another. Due to massive sell off in individual stocks, Nifty eventually plunged below 17900 to conclude the October expiry on a depressive note. In this process, Nifty concluded with nearly 2% loss, thereby marking a biggest single day cut after April 12, 2021. Market ended on weak note for the third consecutive session on October 29 with Nifty closing below 17,700 level. At close, the Sensex was down 677 points at 59306, and the Nifty was down 185 points at 17671.

NIFTY: A STRONG SUPPORT WILL BE @ 17500; STRONG RESISTANCE LEVEL SEEN @ 18000

We witnessed yet another week of correction in the market as it failed to sustain above the support 17700 levels. Our research shows that it is going to be crucial in the short-term for the market to sustain above the 17700 support zone. If the market is unable to sustain the level of 17700, we can witness lower levels of 17500-17300. Technical indicator suggests a volatile movement in the market.

TECHNICALLY SPEAKING

This imposed tremendous pressure on Nifty and in the process, Nifty had to finally surrender the sheet anchor support of 18000. In fact, due to aggrandized selling in the last 2 days, Nifty went on to slide convincingly below 17700. Since last few days, we have been maintaining our cautious stance on the market and even though market was making new highs, we maintained our skepticism and repeatedly advised booking profits. When market was not correcting, this might have sounded senseless, but historically it’s proven, when things look hunky-dory all around, the euphoric situation takes place and that is the time when market surprises with a corrective move. This is exactly what we witnessed in last 2-3 days, finally the bears looked in complete demand. The anticipation has now turned into a confirmation today by violating the 17700 mark. We can see weakness on chart which is the ‘Lower Top Lower Bottom’ on daily chart, coinciding with the convincing close below the ’20-day EMA’. For the coming session, 17800-18000 are to be seen as immediate hurdles; whereas on the lower side, 17600 followed by 17500 has become a sacrosanct support zone. Although midcap index has rebounded sharply, traders are advised not trade aggressively and it’s better to keep a track of mentioned levels. In the banknifty Post creating a fresh new high on Monday above the 41800 the prices have sharply corrected back below the 40000 within no time. Hence, yesterday’s fall has definitely wrecked the bullish sentiment. Prices have now reached 50% retracement of the recent rally and the 20 SMA. Going ahead, in case prices bounces from this support as the hourly oscillators are oversold; it should be used to lighten up long positions. In such a scenario, 39900 – 40500 is likely to act as resistance. On the flip side, immediate support is at 39200 and 38500 levels.