NIFTY WEEKLY PREDICTION & TRADING TIPS FOR 30 MAY TO 3 JUNE 2022

Dilip Buildcon 2022-05-30

IRCTC 2022-05-30

WEEKLY RESISTANCE FOR NIFTY: 16400, 16500, 16600

PIVOT POINT: 16250

WEEKLY SUPPORT FOR NIFTY:  16150, 16000, 15800

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 16300, 16375, 16425

PIVOT POINT: 16225

DAILY SUPPORT FOR NIFTY:  16150, 16050, 15900

DAILY CHART FOR NIFTY

The Indian equity market started the week with high volatility at the opening bell, led by mixed global signals and domestic macroeconomic developments over the weekend. The benchmark index Nifty50 soon rallied optimism and stepped up to test the crucial resistance zone of 16400 odd levels. However, momentum was exhausted in the second half as broad-based profit bookings were seen on various meters and the benchmark index pared any initial gains to end the day a little above the 16200 level, down just 0.32% . Weak Asian signals led to a tentative start in our domestic market on Tuesday, with the benchmark index falling for the first few hours. The Nifty50 index traded in a tight range for most of the session and endured a lackluster trading day. The correction was exacerbated by the weak end that pulled the Nifty below the 16100 subzone, but some recovery soon followed. Finally, the index ended the day a little above the 16100 level down 0.55%. The price action over the past three days suggests a lack of conviction at higher levels and hence the market gets nervous every time we approach the higher range. On Wednesday, the benchmark Nifty50 index remained under pressure from the first few hours, gradually declining to test the 16000 level. The second half saw a brisk recovery from 16000 but that too was softened by the tipping finish to eventually finish a little above that key point. Despite the luke warmness, the market ended the day in favor of the bears, dropping another 0.62%. Our home market saw an action packed session with a V shaped rally on expiry day on Thursday 27th May 2022. The benchmark nifty50 index started the day with a gap to the upside that soon sold into and broke the psychological barrier to test intraday lows of 15904 odd levels. However, mid-session short covering prompted a lively rally that reduced all of the initial loss, followed by the broad-based optimism that boosted market sentiment and ended the week-long selling frenzy. The Nifty ended the expiry session at the daily high, gaining 0.90%. Nifty built on gains of the previous session on May 27. It opened with an up gap and continued to rise to close almost at the intra-day high. At close, Nifty was up at 190 points at 16360. Nifty gained for the second consecutive week rising 0.53% for the week. Sentiments seem to have turned for the better over the past two days.

NIFTY: A STRONG SUPPORT WILL BE @ 16000; STRONG RESISTANCE LEVEL SEEN @ 16600

A move above 16400 could take the Nifty swiftly to 16600 and later 16800. However, 16200 support needs to be protected.  

TECHNICALLY SPEAKING

Investors who joined the global rally were in a buying mood after favorable retail gains in the US. Falling FII sales also gave solace to the domestic market by lowering volatility. The upcoming RBI monetary policy meeting will be a key factor for the market, where they are expected to announce an additional 25-35bp rate hike. The Nifty had a volatile week, falling below the 16100 level but recovering to close in the green on the weekly chart. The daily chart shows that the recent dip has found support near the 78.6% retracement level which was near 15800. The index then experienced new buying support. On the way up, it cleared certain short-term hurdles and is now approaching the crucial 16400 level again. The index has faced resistance near 16350 for the past three weeks. Once the 16400 level is breached on a closing basis, the index will move up to 16625. On the other hand, the short-term support zone is shifting up to 16250-16200. Nifty remained strong as it held above 16200 throughout the day. Momentum oscillator RSI is in a bullish crossover and rising. Going forward, a decisive move above 16400 is likely to trigger a rally towards 16,700-16,800. At the bottom, supports are visible at 16200/16000.