NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 5 SEP TO 9 SEP 2022

WEEKLY RESISTANCE FOR NIFTY: 17700, 17900, 18200

PIVOT POINT: 17500

WEEKLY SUPPORT FOR NIFTY:  17300, 17100, 16800

WEEKLY CHART FOR NIFTY

The weakness in the US bourses over the weekend has shown substantial repercussions on the Indian equity market. The benchmark index tumbled over 370 points at the opening bell, setting a bleak start to the truncated week from 29 aug 2022 . Though the buying was quite relevant at the lower levels, that gradually pulled the indices upwards throughout the day, assuring the undertone remained bullish. The initial loss pared with a modest recovery, wherein the benchmark index concluded the day a tad above the 17300 level with a cut of 1.40%. Tuesday 30 aug 2022 morning, the global cues were slightly better and hence, we started the session with decent bump up above the 17400 mark. As the day progressed, the buying momentum kept picking up; in fact, towards the fag end, we witnessed a complete gush across the board. This lifted the overall sentiments so as the key indices to not only recoup Monday’s losses; but went comfortably beyond last week’s high as well. Wednesday market was closed on occasion of Ganesh Chaturthi. The weakness in the global bourses led to a weak start of our equity market on 1 sep 2022, wherein the benchmark index initiated the day with a gap down. However, our market retaliated soon after the opening bell and gradually gauged momentum to march upwards. Though tentativeness at the higher level was sensed among participants, that triggered a sell-off in the second half. And with the whipsaw movements in the market, the benchmark index Nifty50 concluded the day in red with a cut of 1.22%, a tad above the 17500 zone. On Friday 2 sep 2022 indices erased all the intraday gains and trading flat in the highly volatile market.  The Sensex and nifty ended flat. Sensex ended 37 points up at 58803, while NSE Nifty 50 ended in red at 17539. 

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

On the technical perspective, the crucial support of the 17200 was firmly safeguarded, implying the resilience of the technical support. Though some tentativeness was seen in our domestic market during this week ,but any sign of respite from the global bourses could trigger strong momentum from here on. In terms of technical levels, any breach below the mentioned support could drag the market towards the 17000 zone, which is likely to be seen as the sheet anchor. At the same time, on the higher end, the 17800-18000 could be seen as immediate resistance, followed by the 18200-18500 zone.

TECHNICALLY SPEAKING

The market has struggled for a firm direction today as global markets were largely under selling pressure ahead of the release of US job data, which could provide insight into upcoming Fed actions. Oil prices rose ahead of the OPEC+ meeting on the expectation of a reduction in output, despite the fact that weak global growth prospects remain a concern.  A surging dollar index and rising US bond yields could be reflected in the elevated volatility of the domestic market in the near term. . Overall if we see, the Nifty retraced by nearly 650 points from the recent high i.e., nearly 3.50%. Since the price correction happened in merely three trading sessions, some sort of time-correction was much needed, and this is exactly what our markets had undergone during the latter half of the week. The Nifty has now closed precisely around the mid-point of immediate trading range of 17700– 17300 and since, markets has lost its sheen, it would be difficult to predict the immediate path of action amid some global nervousness. In our sense, one should avoid trading aggressively within the range and till the time, we remain above 17300, there is no reason to worry for. Only a breakdown below this sacrosanct support would extend the corrective phase towards the major support zone of 17200– 17000. Before 17300, we can see immediate support around 17400. On the flipside, 17700 – 17900 are the levels to watch out for. If bulls have to strengthen their stance, Nifty needs to surpass the higher boundary with some authority. Till then it’s better to take one step at a time and ideally the positioning must be on a lighter side. Since global markets are showing mixed directions and few global events are lined up, it would be important to keep a regular tap on these developments. If there is no aberration in the coming week, we may resume the higher degree uptrend soon.