NIFTY WEEKLY REPORT & OPTION CALL PUT TIPS FOR NEXT WEEK 16 AUG TO 19 AUG 2022

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WEEKLY RESISTANCE FOR NIFTY: 17900, 18200, 18500

PIVOT POINT: 17650

WEEKLY SUPPORT FOR NIFTY:  17500, 17300, 17100

WEEKLY CHART FOR NIFTY

The global cues were muted Monday morning and hence, our markets too started the week on a flat note. After a small dip in the initial trades, the buying resumed at lower levels. In fact, the momentum kept on accelerating as the day progressed to close almost at the highest point of the day. Eventually, the heavyweights led rally resulted in Nifty reclaiming the 17500 mark on a closing basis, highest level since April 11. On Tuesday market was shut on occasion of muhuram. Despite quiet global cues Wednesday 10 aug 2022 morning, our markets started the session slightly on the positive side. However, within a blink of an eye, this tiny lead just got disappeared. After a small pause, the buying emerged at lower levels after entering the sub-17450 terrain. The momentum wasn’t as strong as it was on Monday’s session. As a result, the Nifty kept consolidating throughout the remaining part of the session and eventually ended the session tad above previous close. The US markets climbed overnight after easing inflation report and Thursday 11 aug 2022 morning too, they extended the lead. This development resulted in a bump up at the opening in our markets, mirroring the SGX NIFTY. It appeared as if we are going to witness a bumper session on weekly expiry, but the follow up was clearly missing as benchmark index Nifty chose to consolidate in merely 60 points throughout the remaining part of the session. Eventually the day ended with seven tenths of percent gains; but convincingly below the opening level. Market ended near the day’s high on 12 aug 2022 in the highly volatile session with Nifty around 17,700. At Close, the Sensex was up 130 points at 59462, and the Nifty was up 39 points at 17698.

NIFTY: A STRONG SUPPORT WILL BE @ 17500; STRONG RESISTANCE LEVEL SEEN @ 18000

Nifty managed to continue its northward trajectory. The undertone is strongly bullish and now next level to watch out for is 18000. On the flipside, the immediate support is placed in the vicinity of 17500 – 17300. Traders can continue with their buy on decline strategy but one should avoid being complacent as a momentum trader. Markets are continuing with their vertical move and in such scenario, we do not get any swing lows which generally be referred as strong base.

TECHNICALLY SPEAKING

On the technical front, Nifty formed a small negative candle with a gap up opening on the daily chart. the trendline resistance adjoining the highs of Oct’21, Jan’22 and Apr’22 will be the immediate resistance zone on the higher side which is around 17800 to 18000 , likewise support base has now shifted higher to 17500 to 17200 range. Hence one can expect a range-bound action in the market. Momentum oscillator though are trading in overbought price conditions, but no signs of exhaustion can be seen yet rather had been supportive with weekly RSI breached past the 6-months falling trend line. Market breadth has seen remarkable improvement, indicating broader market participation across sectors. Classical theorist can claim that there has been a falling channel breakout and is likely to head higher towards the 18000 levels as it is 80% retracement of entire decline off October 2021 to June low (18500-15500). Thus, during the next week Nifty is likely to open flat to slightly negative though positive bias is likely to remain and intraday dip towards 17500-17200 need to be hunted for creating long position for the target of 18000.The Bank Nifty index continued its strong up move throughout the week and surpassed the level of 39,000 on a closing basis. The index next resistance is placed at 39,500 where fresh call writing has been witnessed and if breached will see a further up move towards the 40000 level. The immediate support on the downside stands at 38,000 and one should keep a buy-on-dip approach.