NIFTY PREDICTION FOR NEXT WEEK 25 OCT TO 29 OCT 2021

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WEEKLY RESISTANCE FOR NIFTY: 18350, 18450, 18550

PIVOT POINT: 18250

WEEKLY SUPPORT FOR NIFTY:  18150, 18050, 17900

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 18150, 18200, 18250

PIVOT POINT: 18100

DAILY SUPPORT FOR NIFTY:  18050, 18000, 17950

DAILY CHART FOR NIFTY

Once again the cheerful mood across the globe led to a head start new trading week at new highs for our markets. Nifty reached yet another milestone of 18600 in the initial trades. However, due to some profit booking in heavyweights, the markets not only gave up its lead; but also slipped inside the negative territory in the first hour itself. This was followed by a v-shaped recovery as we moved closer to the midsession. Everything looked as per the routine, as markets regained strength from the initial decline. But it was not done with its action yet as we witnessed a recurrence of the selling pressure at the stroke of the penultimate hour. Eventually, Nifty ended the session tad above 18400 by shedding nearly 200 points from the high. On Tuesday After hitting fresh lifetime time high indices came down & closed in red. Sensex and Nifty turned red with minutes left before the closing bell. Nifty was nearing 18400 while Sensex was down below 61700. After having touched fresh highs above 40,000, Bank Nifty index has slipped into the red to now trade at 39682. Bandhan Bank was the top laggard on the index, falling more than 4%. Sensex and Nifty scaled fresh all-time highs on 19 October 2021. Once again the cheerful mood across the globe led to a head start at new highs for our markets. Nifty reached yet another milestone of 18600 in the initial trades on Wednesday. However, due to some profit booking in heavyweights, the markets not only gave up its lead; but also slipped inside the negative territory in the first hour itself. This was followed by a v-shaped recovery as we moved closer to the midsession. Everything looked as per the routine, as markets regained strength from the initial decline. But it was not done with its action yet as we witnessed a recurrence of the selling pressure at the stroke of the penultimate hour. Eventually, Nifty ended the session tad above 18400 by shedding nearly 200 points from the high. The global markets were a bit stable and as a result, our markets opened with a decent upside gap on Thursday morning, exceeded the SGX Nifty by a fair margin. However it was merely a formality as we not only saw Nifty erasing all gains but also went on to slide below 18100 during the penultimate hour. Fortunately due to late recovery in some of the heavyweights, Nifty managed to recover fair bit of ground to conclude the weekly expiry tad below the 18200 mark. Markets remained under pressure for yet another session and lost nearly half a percent on Friday. After the initial uptick, the selling pressure resumed as the day progressed which led the Nifty to end lower by 0.3% at 18117 levels. The broader markets also traded in sync with the benchmark and both mid cap and small cap ended lower by 1% each. A mixed trend was witnessed on the sectoral front wherein realty and banking ended marginally higher while healthcare, metal and IT settled in the red.
NIFTY: A STRONG SUPPORT WILL BE @ 17900; STRONG RESISTANCE LEVEL SEEN @ 18600

Markets will react to the Reliance and ICICI Bank results in early trade on Monday. Besides, global cues and movement in crude oil prices would be actively tracked. On the benchmark front, we expect Nifty to find support around 17900 zone while 18200-18,400 zone would act as a hurdle. While traders are complaining of excessive volatility across the board, the recent fall is helping investors to accumulate quality stocks which are available at a good bargain. Immediate support for Nifty is 18000. if the market is able to sustain the level of 18000 then we can see a reversal in the market. We believe market direction in the near term will depend on Q2FY22 earnings and their management commentary, demand in festive seasons and commodity prices.

TECHNICALLY SPEAKING

Equity market in India witnessed volatility during the week ended 22nd October 2021. The improvement in high frequency domestic economy indicators continued with the further opening up of the economy and the level of vaccinations crossing the 1Bn mark.  The overall COVID data is encouraging with daily new case additions touching a 7 month low even while we remain watchful during the festival season and also for any new variants of the virus. Index closed a week at 18114 with loss of more than one percent on weekly basis and formed a dark cloud cover candle pattern on weekly chart which is bearish reversal candle pattern by nature, so if we slipped below 18k mark we may see short term reversal in index. The index has formed consecutive bearish candles throughout this week which hints bears are trying to grip the market from higher levels & which will be possible if we drag below the 18k mark in the coming week. Immediate supports for Nifty is coming near the 18k mark followed by 17950 zone and if index managed to hold above 18k mark, one can expect a swift pullback & resistance is coming near 18250-18350 zone. If the market is able to sustain the level of 18000, we can witness a reversal in the market. We have observed the momentum indicators like RSI and MACD indicating signs of reversal in the market.Going forward, market direction would likely be determined among other factors by a) demand momentum in the festive season b) movement in commodity inflation and c) mobility trends. Commentary of companies that are yet to report results of Q2FY22 and institutional flows should be other factors to watch out for market participants.