WEEKLY
RESISTANCE FOR NIFTY: 17600, 17800, 18000
PIVOT POINT: 17400
WEEKLY SUPPORT
FOR NIFTY: 17200, 17000, 16800
WEEKLY CHART FOR NIFTY
12 september start of the week monday morning, the SGX Nifty was predicting a slow start. Despite this, our benchmark index opened on September 12, 2022, with a respectable upside gap, taking into account the increase in US markets on Friday. The early lead was increased above 17950 in the first hour alone. However, following that, most of the heavyweights' movement stalled, and for the remainder of the session, the Nifty traded in a narrow range. Finally, it ended with gains of more than 0.5 percent that were solidly over the 17900 level. On September 13 morning, the global setup was favourable, and as a result, the Nifty opened the session with a respectable gap over the psychological level of 18000. But in the majority of the heavyweight index movers, the follow-up purchasing was conspicuously absent, just as it had been the previous session. In fact, throughout the second half, the range was reduced to just 30 points. Eventually, the Nifty decisively closed the session over 18000 for the first time in the previous seven months. The way the Nifty ended above 18000 on Tuesday indicated that market participants had grown a little smug and had taken the US macro data for granted. However, following the soaring inflation report in the evening, US markets completely collapsed. The advances in US markets over the previous three to four days were lost as a result of this devastating blow. Without a doubt, we responded on September 14 in the morning with a huge gap down toward 17800. However, after an initial glitch, the banking sector stepped in to save the day, and other sectors (aside from IT) soon followed. Through this approach, we were able to recover the 18000 mark on a closure basis in addition to significantly reducing a percentage of our losses. After the spectacular session on September 15, Thursday morning's start was pleasant. In the first few minutes of trading, the Nifty surged in the direction of 18100, while the banking index quickly accelerated to hit a new high of 41840.15. We appeared to be in for a fantastic weekly expiration Thursday However, as the market tends to surprise occasionally, we then saw a quick profit-booking that caused profits to be not only reduced but also to enter the negative region. The Nifty finally ended the weekly expiry with a fall of seven tenths of a percent, just below the 17900 level, despite some choppy swings in the later part. The Sensex dropped 1093 points on Friday, September 16, 2022, to close at 58840. Nifty finished at 17,530, down 346 points. On the last day of the week, markets experienced a violent sell-off and dropped close to 2%. Nifty began with a down gap and then progressively moved down, settling closer to the lower band of the day's range, before closing at 17,530 levels. There was intense selling pressure, with IT, real estate, and the car industry among the worst losses. The gains from the previous week have been fully erased by the index's recent two days of fall, and a decline in Nifty below 17,500 may cause a further decline.
NIFTY & BANKNIFTY: STRONG SUPPORT& STRONG RESISTANCE LEVEL
The fact that the Nifty exceeded 18000 this week wasn't unexpected given how our market has been doing over the previous week or two. Additionally, the last four to five days have seen supportive global markets, which gave the situation the much-needed boost. Now that heavyweight elements appear to have entered a consolidation phase, prominent indices do not appear to be following the pace. However, if we look at the bigger picture of the market, there is absolutely no lack of activity. We also stress that one might continue to be bullish and concentrate more on fluctuations inside individual stocks, which are probably going to offer greater trading chances.
TECHNICALLY SPEAKING
The domestic market gave in to the global trend despite its strong decoupling scenario and positive macroeconomic data due to ongoing bearish pressure from global stocks, increasing rates, and the dollar index. The global market has begun pricing in the possibility of a more aggressive policy response from the Fed following the release of US inflation data, which showed a MoM increase in inflation. On the daily chart, Nifty deviated below the downward trend line, indicating a decline in bullishness. The index has deviated below the 20 EMA, the daily timeframe's short-term moving average. Momentum oscillator is dropping and in bearish crossing. The near-term trend appears to be downward; 17550 is the first level of support beyond which the Nifty may fall toward 17300. At the higher end, 17750 is where resistance can be seen. India's VIX jumped by 7.8% to levels close to 20, signaling a rise in market volatility. We anticipate that this trend will persist until the US Fed's decision to raise interest rates next week is made clear. On the daily chart, Nifty deviated below the downward trend line, indicating a decline in bullishness. The index has deviated below the 20 EMA, the daily timeframe's short-term moving average.
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