NIFTY PREDICTION FOR NEXT WEEK 27 DEC TO 31 DEC 2021

WEEKLY RESISTANCE FOR NIFTY: 17200, 17400, 17600

PIVOT POINT: 16900

WEEKLY SUPPORT FOR NIFTY:  16700, 16500, 16300

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 17050, 17150, 17250

PIVOT POINT: 16950

DAILY SUPPORT FOR NIFTY:  16850, 16750, 16650

DAILY CHART FOR NIFTY

The moment global markets became nervous; we had a terrible start on Monday morning start of the week to breach the important support in opening trades only. As the day progressed, the selling aggrandized across the board to send Nifty towards the 16400 mark. At one point things looked extremely bleak, but fortunately for us there was no further damage done in the latter half. In fact due to modest recovery, Nifty managed to close tad above 16600.Monday’s session was terrible for equity markets across the globe; however Tuesday morning, the picture improved a bit. The Dow futures were trading with a decent up tick early in the morning which had a rub off effect on other Asian bourses as well. No brainer, our markets too started with a good bump up and then extended gains in the first half to even surpass the 16900 mark. However, post the mid-session,  we  witnessed  some  nervousness  at  higher  levels  which resulted into a sharp profit booking to erase some portion of gains. Wednesday morning, we started the day with yet another bullish gap; courtesy to spectacular  overnight  rally  in  US  bourses.  This was followed by a long consolidation in key indices. However individual themes kept moving on their own all this while. Towards the end, heavyweight stocks  gained  some  momentum  which  pushed  the market higher beyond Tuesday’s high. Eventually the Nifty ended the session tad above the 16950 mark. On Thursday For the third consecutive session, our markets witnessed a gap up opening by a fair margin, owing to favourable cues from the global peers. Although there was not much activity seen post the head-start, Nifty managed to maintain its positive posture throughout the session. Eventually, Nifty ended the weekly expiry well above the 17050 mark. With this, the bulls added another seven tenths of a percent to their kitty to recoup all Monday’s losses. On Friday market closed lower in choppy trade after rising for three sessions amid a global surge in the Omicron coronavirus variant expected to be less severe than the Delta variant. Heavy selling pressure was witnessed in banking, financial, power, metal and auto stocks. The Sensex fell 190 points, to close the day at 57124, and the Nifty shed 74 points to end at 16998.

NIFTY: A STRONG SUPPORT WILL BE @ 16500; STRONG RESISTANCE LEVEL SEEN @ 17500

Last three days’ recovery has been remarkable considering the nervousness we had early this week. Today’s close below 17000 is an indication that the bears have lost their steam; because we not only surpassed the downside gap area created on Monday but also went on to negate the breakdown. Now we are in a neutral zone from the bearish trend and if bulls have to regain the strength, 17300 – 17500 needs to be surpassed with some authority. This development will confirm the completion of recent corrective phase and the bulls would probably be back at a driver’s seat thereafter. If this has to happen, the banking needs to step up which is slightly lagging behind in the recovery. Let’s see how things pan out going ahead as we are inching closer to the calendar year end.

TECHNICALLY SPEAKING

It was probably the weakest week in recent months and with this, we are back to August month levels. If we take a glance at the weekly time frame chart, we can see Nifty precisely entering our mentioned target zone of 16700 – 16500. Since we were not so far away from the sheet anchor support of ‘200-day SMA’, we had some respite around it. But by saying this, we do not consider this as a bottom. If we have to arrive at such decision, we need to assess the situation throughout this week. The intermediate structure remains weak and now the resistance zone shifts lower from 17700 to 17500 – 17300. Till the time we do not reclaim the higher end of this range, the trend remains bearish. Before this, this week gap area of 17000 – 17100 to be seen as immediate hurdles. On the flipside, key supports are placed around 16700 – 16500.