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WEEKLY RESISTANCE FOR NIFTY: 17900, 18150, 18300
PIVOT POINT: 17800
WEEKLY SUPPORT FOR NIFTY: 17700, 17500, 17300
WEEKLY
CHART FOR NIFTY
DAILY RESISTANCE FOR NIFTY: 17875, 17975, 18075
PIVOT POINT: 17775
DAILY SUPPORT FOR NIFTY: 17675, 17575, 17475
DAILY CHART FOR NIFTY
The calendar year 2022 started on a pleasant note despite
SGX was indicating some sluggishness. The bulls took the charge right from the
word go and within first hour itself, Nifty hastened towards 17500. It was
followed by a steady up move throughout the remaining part of the session to
even conquer the important level of 17600 on a closing basis. With this, the
bulls made a statement on the first day of the year as they pocketed more than 1.50%
gains to the previous close. Despite was indicating a flat start, our
markets started the Tuesday with yet another upside gap. Within few ticks,
Nifty was above 17700; but the initial volatility dragged index lower to enter
sub17600 territory before anyone could realize. Fortunately the nerves settled
down in the first half an hour which was then followed by a steady up move
throughout the remaining part of the session. Due to some tail end buying,
Nifty went on to reclaim 17800 on a closing basis. Wednesday morning, most of
the global bourses were a bit nervous and hence Nifty was indicating a
sluggish start. At the opening, our markets completely shrugged off these cues
and opened on a positive note. In the initial hours, Nifty looked a bit tentative
on the back of strong profit booking seen in IT heavyweights; but banking
provided the helping hand. It not only came for a rescue but managed to lift
the benchmark higher throughout the remaining part of the session to add
another seven tenths of percent to the bulls’ kitty. During the previous night,
US markets suddenly took a nosedive after US Fed hinted towards possible early
hike in interest rates. This had a rub off effect on all other global peers on Thursday
morning and we were obviously not spared on this occasion. Indian markets
started the day with decent downside gap, trapping most of the overnight
traders after Wednesday’s spectacular close above 17900. Around the
mid-session, Nifty was back to 17650; but fortunately a modest recovery thereafter
trimmed some of its losses to conclude the weekly expiry comfortable above
17750. Friday was a volatile day, after a positive opening index made an
intraday high at 17905 level but showed profit booking from a higher level as
made intraday low at 17704 levels and
managed to close the session at 17812 level with a gain of 66 points. NIFTY: A STRONG SUPPORT WILL BE @ 17400;
STRONG RESISTANCE LEVEL SEEN @ 18200
We are
now shy away from the psychological mark of 18000 and the next leg of the rally
would start after surpassing it convincingly. Till then it would be a daunting
task for the bulls to overcome the sturdy wall of 18000 – 18100. The way tables
have turned in favor of the bulls in last couple of weeks, it would merely be a
formality to overcome this hurdle and then move towards the previous highs. But
before this, we are likely to see some in between profit booking considering
the sharp run up in such a short span.
TECHNICALLY SPEAKING
On the technical front, the index has been trading with higher high & higher low formation on a weekly chart as well as formed open marubozu candlestick which suggests an upside rally in the counter. On a four hourly chart, index has formed a hammer kind of candlestick pattern which adds bullish momentum for upcoming sessions. Moreover, the index has been trading above 21 & 50-HMA which suggests strength in the counter. However, a momentum indicator MACD trading with a positive crossover on the daily time-frame. At present, the index has support at 17500 levels while resistance comes at 18000 levels, crossing above the same can show 18200-18300 levels. On the other hand, Bank Nifty has support at 36800 levels while resistance at 38300 levels.
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