WEEKLY RESISTANCE FOR NIFTY: 18000, 18250, 18500
PIVOT POINT: 17750
WEEKLY SUPPORT FOR NIFTY: 17500, 17250,
17000
WEEKLY CHART FOR NIFTY
DAILY RESISTANCE FOR NIFTY: 17950, 18050, 18150
PIVOT POINT: 17850
DAILY SUPPORT FOR NIFTY: 17750, 17650, 17550
DAILY CHART FOR NIFTY
We started the week with a decent bump up and as the day progressed,
the momentum kept accelerating in the upward direction. Within first couple of
hours, Nifty managed to reclaim the 15700 mark which then decided to
consolidate around it for the remainder of the session. Eventually the
inaugural day of the week ended with nearly a percent gains. The US markets underwent a decent correction
overnight and the Asian peers obviously reacted negatively to it. The Nifty was
indicating a gap down on Tuesday opening but we did not open that lower. In
fact, after the initial nervousness, market stabilized and slipped into a
consolidation mode throughout the first half. However, the buying emerged
immediately post the mid-session which kept accelerating as we moved ahead. Due
to good participation from the heavyweight spaces, Nifty went on to reclaim the
17800 mark by adding three fourth of a percent gains. Market was divided into
two parts on Wednesday. First one belonged to the mighty bulls but during the
latter half, the weakness was clearly visible. . For the first half an hour,
index consolidated a bit but then we witnessed some correction to slide below
17800. The bulls were not going to give up as easily as we witnessed a complete
recovery to retest morning highs in the first half it. However, globally things
started to worsen a bit which resulted in a sharp decline in our market
throughout the second half to conclude tad below 17650. Wednesday’s weak
session was followed by a surprising opening with a decent gap in the weekly
expiry session. This was mainly on the back of overnight recovery seen in US
markets. The mighty bulls are certainly in no mood to give up. The way we
closed on Wednesday, who would have thought we would open higher yesterday with
such a decent margin. After a good head start, index remained in a slender
range for the remaining part of the Thursday. Eventually, Nifty ended tad below
the 17800 mark by adding more than eight tenths of a percent to the previous
close.
NIFTY: A STRONG SUPPORT WILL BE @ 17700;
STRONG RESISTANCE LEVEL SEEN @ 18000
.Now we
are at the corridor of uncertainty i.e. 17900 – 18000. Whether the market has
enough strength to go pass it or not, the time will tell. On the flipside,
17700 first and then the sacrosanct support is placed at 17500. Let’s see how
market behaves from here on. Mostly we are reacting to US markets and hence, it
would be important to keep a close eye there as well. As far as traders are
concerned, they can continue focusing on individual stocks; but do not forget
to maintain proper risk management.
TECHNICALLY SPEAKING.
We clearly shrugged off negative cues from the global
bourses and moved higher on our own. This indicates how overall strong the
trend has been. Although, we have been skeptical of late, market is in no mood
to correct. Yes we are in two minds, whether to stick to the recent stance or
be with the trend. But as we have been highlighting lately, some of the time
wise projections as well as negative divergences are still holding us back.
Because such indicators may not provide precise timing but they would certainly
be handy in giving early cautions. Hence, we reiterate and advise traders not to
get carried away in this move. The market witnessed some volatile movements and
an attempt to hold the level around the Nifty Index level of 17895. The market
is going to be crucial for the short-term scenario to sustain above the
17750-17850 Nifty Index support zone. If the market is able to sustain the
level of 17750-17850, It can witness higher levels of 18000. The momentum
indicators like RSI and MACD indicating positive momentum is likely to continue.
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