Friday, November 18, 2022

NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 21 NOVEMBER TO 25 NOVEMBER 2022

 FOR THE LIVE NIFTY OPTION/ BANKNIFTY OPTION /STOCK OPTION /STOCK FUTURE /NIFTY FUTURE /BANKNIFTY FUTURE /STOCK CASH / OPTION STRATEGY TRADING TIPS CALL OR WHATSAPP ON 9039542248

WEEKLY RESISTANCE FOR NIFTY: 18500, 18650, 18800

PIVOT POINT: 17350

WEEKLY SUPPORT FOR NIFTY:  18200, 18050, 17950

WEEKLY CHART FOR NIFTY






Trading for the week on 14 November 2022 started on a flat to positive note. However, since there was no major development globally over the weekend, the cues were missing and the same was the case on domestic front as well. Hence, in the absence of any trigger, the key indices chose to consolidate in a slender range. In fact, it was one of the most dullest session for indices in the recent time. Throughout the session, Nifty vacillated in a slender range of merely 90 points with no intent to go anywhere. Eventually, the benchmark index Nifty ended the session with a negligible loss tad below the 18350 mark. For the second consecutive session on 15 November 2022 Tuesday, our markets started with a mildly positive bias owing to mixed global cues. Within few minutes, we not only managed to pare down gains but also slipped inside the negative territory due to small decline in the first half. More than a correction, we can consider this price action merely as a continuation of Monday’s consolidation phase. At one point, it appeared as if we are going to witness one more session of boredom but unlike previous day, this time we witnessed a sharp recovery towards the latter part to conclude with Four tenths of a percent gains. We started yet another session Wednesday 16 November on flat note and then consolidated nonchalantly till we reach the final hour of the session. Suddenly, with some nervousness across the board, Nifty made an aggressive move towards the key support of 18300 - 18260. The moment it appeared a bit shaky, the mighty bulls came for a rescue to lift the market back above the 18400 mark. The global cues were a bit on the sluggish side to start of the day. However, we began the 17 November 2022 on a flat note by shrugging off these developments. For the most part of the session, index consolidated in a slender range. But unlike previous sessions, the end was certainly not the same. We witnessed a nosedive in last 30 minutes of trade to conclude the session tad below the 18350 mark.  Indian benchmark indices ended lower in the volatile session on November 18. Markets traded volatile and ended marginally lower, in continuation to the prevailing consolidation phase. After the flat start, the Nifty index gradually inched lower as the session progressed however recovery in the final hours pared the losses significantly. It finally settled at 18307 levels; down by 0.2%. 

NIFTY: STRONG SUPPORT& STRONG RESISTANCE LEVEL

At present, we are in a perfect consolidation phase of a bullish market. The bulls first let counter-parties create a scenario of a breakdown and then with collective strength at supports, lifts the market almost at day’s high. As far as levels are concerned, 18200- 18000 is to be seen as immediate support zone, whereas on the flipside, 18500-18800 are to be seen as immediate hurdles. We advise traders not to take aggressive bets on indices, rather its better to focus on selective pockets which have potential to be in highlight.

TECHNICALLY SPEAKING

The Nifty witnessed muted action in the week gone by & ultimately posted a negative weekly close after four consecutive positive weeks. The short term momentum indicators have been showing negative divergence, which is a sign of weakness & the price action is expected to follow the suit. Going ahead, the Nifty is expected to tumble towards 18200-18000 in the short term. On the higher side, 18450 has been acting as a resistance for the index & will continue to act as a cap for the short term. The broader end of the market is expected to see deeper cut in the short term.  Markets are indicating the prevailing consolidation to continue and Nifty should decisively cross 18500 levels to regain strength. Meanwhile, we reiterate our view to focus more on sector/stock selection citing restricted participation. Besides, we’re observing breakout failures across sectors, so maintain strict risk management rules also in place.

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