NIFTY PREDICTION FOR NEXT WEEK 4 OCT TO 8 OCT 2021

WEEKLY RESISTANCE FOR NIFTY: 17600, 17800, 18000

PIVOT POINT: 17400

WEEKLY SUPPORT FOR NIFTY:  17200, 17000, 16800

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 17550, 17650, 17750

PIVOT POINT: 17500

DAILY SUPPORT FOR NIFTY:  17450, 17350, 17250

DAILY CHART FOR NIFTY

The overnight global cues were positive and the Nifty was trading above 18000 hinting at a positive start. However, the Nifty failed to capitalize on the cues and started the moday marginally positive around 17930. The index did not witness any further upmove from open, but it consolidated within a range of 100 points and ended on a flat note. Nifty started the tuesday marginally positive and traded in a range for the first couple of hours. However, the index then breached the support of 17800 which led to a sell-off and it even entered sub 17600 zone to mark a low of 17576. But it was not over yet, we witnessed sharp pullback from that low in the last hour of the trade and the index trimmed some of the losses to end with a cut of six-tenths of a percent around 17750. The global markets corrected sharply and the cues were not much positive at the opening Wednesday. Hence, inspite of the recovery from the lows on Tuesday, we started yesterday’s sessions on a negative note. However, there was no follow up selling and the index gradually recovered to recoup the losses at one point of time. Nifty ended the session marginally negative above 17700. Nifty started the Thursday expiry session on a flat note and traded within a narrow range till noon. However, we witnessed a gradual correction in the later half and the index ended tad above 17600 with a cut of more than half a percent.

NIFTY: A STRONG SUPPORT WILL BE @ 17000; STRONG RESISTANCE LEVEL SEEN @ 17500

Nifty managed to trade above its previous session low of 17500 which is an important support level (89 EMA on the chart). Nifty consolidated within a range, but the short term support of 17800 which was breached on Tuesday acted as a resistance, and the index did not surpass that either. However, outside the index the stock specific movement was positive and provided good trading opportunities for day traders. The market is showing some uncertainty and rising VIX levels could lead to some higher volatility.

TECHNICALLY SPEAKING.

In last couple of sessions, we had seen some consolidation within the range of 17800-17975 in Nifty. The index breached the immediate support of 17500 which then led to a profit booking during the day. In the recent corrective phase from 17800 to 17350, Nifty managed to form a support around its ‘89 EMA on the chart' and it resumed the uptrend. The 17576 also coincides with the same moving average from where we witnessed a pullback in the end. Whether the index resumes the upmove again from this support or breaks it that should be clear in next 1-2 sessions. But if the index breaches this support around 17550 then we could see a deeper correction this time. Hence, traders should be vigilant on the market moves and book out long positions in case such a scenario unfolds. Below 17500, the next levels to watch would be 17450 and 17350. On the flipside, 17900 and 17800 would be seen as immediate resistances. On the technical front, the Index has given a breakdown of the rising trendline and given closing below the same, which suggests some correction can come. On a daily chart, the index has been trading with lower high, lower low formation, which indicates weakness in the counter. Moreover, the index has started to trade below 21 DMA, which adds weakness in the counter. At present, the Nifty has immediate support at 17400 while resistance comes at 17750 levels.