WEEKLY RESISTANCE FOR NIFTY: 16000, 16250, 16500
PIVOT POINT: 15750
WEEKLY SUPPORT FOR NIFTY: 15550, 15250,
15000
WEEKLY
CHART FOR NIFTY
DAILY RESISTANCE FOR NIFTY: 15900, 16000, 16100
PIVOT POINT: 15800
DAILY SUPPORT FOR NIFTY: 15700, 15600, 16500
DAILY CHART FOR NIFTY
Our market started the week on
a weak note, gapping lower, following weakness in global stock markets.
Benchmark index Nifty50 tumbled in the first few hours to test odd levels below
16150, suggesting weaker sentiment. Gradually the market gained control of the
decline and recovered from the lower bottoms to stem the initial loss and ended
the day marginally lower at 16302. Indian equities started Tuesday's session
subdued, led by the mixed global indicators, with the benchmark Nifty50 index
seeing mild range-bound movement throughout. There was no significant movement
in the primary index until a sell-off triggered by the end of the doldrums,
which certainly showed the reluctance of market participants. After the
lackluster session, Nifty ended the day in red down just 0.38%at 16240. Our
market started Wednesday's session on a stable footing, led by the overnight
rebound in the global market. The benchmark Nifty50 index saw a flat open that
soon turned into a correction as a broad sell-off triggered and tested the
16000 odd zone at the bottom. The bear market intensified; However, the market
is catching the fall in the second half and is beginning to fear cutting
losses. The rebound was quite significant, with Nifty ending the day down just
0.45%, just above the 16150 level. The Indian stock market tumbled on Thursday,
trailing global bourses, with the benchmark Nifty50 index underperforming since
the start of the session the psychological mark of 16000 fell. Weakening macro
factors have dampened overall sentiment as we witness relentless selling
pressures in equities. The index ended the day down another 2.22%in red to
settle at the 15808 level by weekly expiry. On Friday Indian markets
started on a positive note but later wiped off all the gains in later half. Benchmark
indices erased all the intraday gains and ended lower for the sixth consecutive
session on May 13. At close, the Sensex was down 136 points at 52793, and the
Nifty was down 25 points at 15782. In India, the CPI inflation in April 2022
surged to 7.79% (March 2022 : 6.95%), while March 2022 IIP growth remained
subdued at 1.9% (February 2022: 1.5%). FII’s continued their selling of
Indian equities this week. Rising bond yields, high inflation levels and
monetary policy tightening action by Central Banks globally will weigh on near
term sentiments which could keep markets volatile. Stock specific action will
continue due to ongoing result . However, the weakness seen in the banking
sector triggered a late selloff. The US Fed cautioned against an aggressive
policy stance in order to bring inflation under the Fed’s comfort zone of 2%.
NIFTY: A STRONG SUPPORT WILL BE @ 17400; STRONG RESISTANCE LEVEL
SEEN @ 17800
For
traders, 15700 would act as a key
resistance level and below which the index could slip till 15500. However,
15900 would be the immediate trend reversal level for the bulls and above which
we could see a strong pullback rally up to 16200-16500.
TECHNICALLY SPEAKING
Monday's
session got off to a jittery start as global sentiment remained jittery over
the weekend. The index remained range bound for the first half of the week and
despite some challenges, Nifty managed to hold 16,000 on a closing basis. On
Thursday, however, banking finally succumbed to the sell-off, taking Nifty
below the psychological point to mark its lowest close in the last ten months.
On Friday we started significantly higher on global relief; but once again our
market failed to sustain higher levels and eventually wiped out all gains in
the second half. As a result, Nifty again lost almost 4% on a weekly basis.
Global macro factors have weighed heavily on financial markets around the world
and we are certainly not spared. The oversold market is in denial mode to stage
a small recovery; in fact Friday's rebound was fully sold near the end of the
fag. That certainly doesn't bode well for the Bulls. The recent low of 15671 is
not far from the current levels now and the moment we slide below it it will
create some kind of panic situation in the market. Below that, 15350 - 15200
are the next levels to watch out for. On the other hand, 16000 - 16200 has now
become a firm hurdle. The first signs of relief are only possible above these
values. Until then, one should avoid trading aggressively in the market. Taking
a look at the weekly timeframe chart, we can see a sheet anchor in the form of
89-EMA placed around 15600. .
In the past, this moving average has proven its
worth and cushioned severe price declines. It would be very interesting to see
how the market behaves around him. Therefore, although the trend is currently
sharply down, we advise investors with a slightly broader time frame to start
nibbling on quality offers. With global factors fully driving the markets,
traders should keep a close eye on all these developments. Technically, The Nifty has formed a bearish candle on the
weekly chart, indicating downward movement for the upcoming session.
Additionally, Nifty faced resistance from a rising trend line and showed
selling pressure, a sign of selling at higher levels. Additionally, Nifty has
been held below the neckline of the Head & Shoulder pattern, indicating the
south direction for the upcoming session. However, momentum indicators MACD
& Stochastic traded with a negative crossover and entered oversold
territory. So far, however, there is no reversal sign. The Nifty could find
support around the 15,700 level while 16,100 upside could serve as an immediate
hurdle for the Nifty crossing above which it can attract fresh buying. On the
other hand, Bank sent support at 32600 while resistance stands at 34000.
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