NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 12 SEP TO 16 SEP 2022

WEEKLY RESISTANCE FOR NIFTY: 18000, 18200, 18500

PIVOT POINT: 17700

WEEKLY SUPPORT FOR NIFTY:  17500, 17300, 17100

WEEKLY CHART FOR NIFTY

Over the previous week, the Sensex and Nifty Index both increased by 1.7%. Rising local bond yields and declining crude prices helped to support Indian markets. The top three gainers among the major sectors last week were banks, capital goods, and healthcare, while the top losers were automobiles. As a result of the mixed global cues on Monday, September 5, 2022, the SGX Nifty was forecasting a slow start to the week. Despite this, we had a good start to the session, and it moved further north during the first hour. After crossing the 17650-point threshold, the index entered a consolidation phase. The remainder portion of the day featured a narrow range with a highly positive undertone.  Finally, the Nifty finished up with gains of just over 7/10 of a percent. On Tuesday, September 6, 2022, our markets once again utterly disregarded the lame global cues as we got off to a good start in the session. Nifty practically accelerated beyond the 17750 level in the first hour, and it seemed as though it would finally exit the congestion zone. However, cautiousness was noticed once more at higher levels, which led to the erasing of all gains and even a slip below 17600 at the session's midpoint. Fortunately, the dip was successfully bought into, and after some zigzag movement, the Nifty ended the session slightly lower. . On the third session of the morning on Wednesday, September 7, 2022, we saw a gap down open as a result of uneasy global cues. The early morning dip was once again bought into, like in previous sessions. After that, the range-bound action continued with numerous stock-specific swings to draw in traders. In the end, the Nifty finished the session just over the 17600 level. On Wednesday night, the US markets, which had been in a downward trend for the previous few weeks on Thursday, September 8, 2022, rapidly recovered since they were overbought. Being the market that has recently outperformed others, we were looking for a slight boost in sentiment, and a swift recovery worldwide gave the session the much-needed impetus. In fact, a small bout of profit booking around the mid-session was absorbed with an ease. Eventually, Nifty concluded the weekly expiry around the 17800 mark by adding a percent to the bulls’ kitty. On Friday 9 September 2022 after topping the 60,000 mark, Sensex gave up morning gains to end the day only 100 points higher at 59788. Nifty also retreated from 17900 mark and ended the day higher at 17830.

NIFTY & BANKNIFTY: STRONG SUPPORT & STRONG RESISTANCE LEVEL

Nifty's next level of support is 17500, while 18100 may operate as a short-term barrier to the upward. The Bank Nifty, on the other hand, has a support level at 39600 and a resistance level at 41000. On charts, the Nifty looks robust as long as it holds the 17600 mark.

TECHNICALLY SPEAKING

For market participants, it was definitely not a relaxing week. Even if there may not be a noticeable difference from week to week, the market's experiences, particularly in the first half of the week, are not accurately portrayed. Technically speaking, the initial upward movement towards 17166 was a component of the "Price-wise correction" that had finished its 50% retracement of the prior upward movement from 16438 to 17992. Now, what we have seen over the past few days may be classified as a "Time-wise correction," which is a crucial component of market behaviour. Therefore, the range between 17500 and 17200 has already established itself as sacred, and any decrease in the coming week should preferably be used as a buying opportunity. Prior to this, 17400 should also be considered immediate support. 17800–18000 is to be treated as a solid wall on the higher side. When we surpass this (which is likely to happen), the rally may begin its next leg, which might push it over the 18200 barrier in the following weeks. Therefore, traders are recommended to maintain their composure and concentrate on stock-specific actions while important indexes are still in their consolidation mode.