NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 22 AUG TO 26 AUG 2022

FOR THE LIVE TRADING TIPS JOIN US ON WHATSAPP 9039542248

WEEKLY RESISTANCE FOR NIFTY: 17950, 18200, 18500

PIVOT POINT: 17650

WEEKLY SUPPORT FOR NIFTY:  17500, 17300, 17100

WEEKLY CHART FOR NIFTY

The truncated week has started from 16 aug 2022 on an optimistic note, taking cues from the positive global bourses. The benchmark index Nifty50 has seen a decent gap up with the opening bell and carried its positive stature throughout the session. Though in midsession, the index witnessed a bout of correction that firmly got bought into by the sturdy bulls of the D-Street. The secular up-trend extended for another day, wherein the index gained nearly 0.72% and settled firmly above the 17800 level. The Indian equity market started 17 aug 2022 session on a promising note tracking the positive global cues. The optimism across the global bourses and favorable domestic macro data has spread buoyancy to our market, resulting in broad-based buying interest. The benchmark index Nifty50 surged upwards for the seventh consecutive session to reclaim the 17900 level and continued its positive stature by procuring over six-tenth of a percent gain. The weakness in the global market led to a mild start on 18 aug 2022 in Indian equities, wherein the benchmark index opened lower on the weekly expiry session Thursday. Soon after, the bulls grabbed the opportunity and made a modest recovery in the index, but the correction got triggered again at the higher levels. Amidst the intense tug of war throughout the day, the bulls retaliated firmly and levitated the index to day’s high. The winning streak continued for the eighth consecutive session, wherein the Nifty concluded the day with a mere gain of 0.07 percent and settled a tad above 17950 level. Despite Wall Street ending in green on Thursday, uncertainty over the pace of interest rate hikes kept Asian and European traders on their toes on Friday. Indian stocks lost more than a per cent but other Asian stocks had mostly a flat day. Europe also lost ground in the morning trade.  On 19 aug 2022 Indian equity market snapped 8-day gaining streak and ended lower with Nifty below 17,800. At Close, the Sensex was down 651 points at 59646, and the Nifty was down 198 points at 17758. Equity benchmarks started the trade on a positive note on Friday but both the indices turned volatile soon after, with the Sensex and the Nifty swinging between gains and losses.

NIFTY: A STRONG SUPPORT WILL BE @ 17500; STRONG RESISTANCE LEVEL SEEN @ 18500

The bulls have taken complete control of the market and are being very rigid in letting any correction to happen. The broad-based buying has also bolstered positive sentiments across the participants, which are evident on the technical chart. The unilateral movement of the index has placed it toward the psychological mark of 18000, which might hinder the ongoing up move, followed by the weekly swing high of 18100-18200 odd levels that might act as a sturdy wall for the bulls. On the contrary, 17700-17600 is likely to act as the immediate support zone, whereas the sacrosanct support lies around the 17500 mark.

TECHNICALLY SPEAKING

After the one-way rally, on 19 aug 2022 markets have witnessed sharp profit booking from higher levels. There is a broad-based decline today on week closing. Nifty broke its last two days' lows and slipped more than 250 points intraday from the high of 17992 to make a low of 17728. Except Nifty IT, which is held in green, all other major sectorial indices saw profit booking. The Bank Nifty index saw the biggest decline as it corrected more than 900 points, or 2.5%, from the intraday highs. India Vix is up 0.8 basis points owing to volatility. Globally as well as domestically, markets are witnessed a sell-off in today’s trading session, with broad-based selling across sectors on the back of valuation concerns, with rate-sensitive stocks leading the correction. Nifty continues to be strongly supported around the 17600-17400 zone, whereas resistance is seen around the 18200-18500 mark. Market has seen a vertical rally in 2-3 weeks, so some sort of profit booking around the psychological mark of 18000 was evident. The benchmark indices are witnessing profit booking after continuous rally since last few weeks. Sectors like Banking, Auto and Power are majorly contributing towards the fall. We may see some more correction of around 3 – 5% in the said sectors. Nifty may touch the levels of 17600 in this momentum . Investors are well advised to adopt a cautious approach at current market levels. We even advised to stay light at higher levels.