NIFTY BANKNIFTY WEEKLY OUTLOOK FOR 5 DECEMBER TO 9 DECEMBER 2022

WEEKLY RESISTANCE FOR NIFTY: 18850, 18950, 19150

PIVOT POINT: 18750

WEEKLY SUPPORT FOR NIFTY:  18650, 18550, 18450

WEEKLY RESISTANCE FOR BANKNIFTY: 43500, 43800, 44200

PIVOT POINT: 43200

WEEKLY SUPPORT FOR BANKNIFTY:  43000, 42500, 42200

WEEKLY CHART FOR NIFTY BANKNIFTY

The week got off to a jittery start on November 28, 2022 due to global peers' cautious approach. Our markets also opened slightly in negative territory given the concerns surrounding COVID in China. After a brief pause, buying resumed as we entered the second half. However, due to some modest profit bookings towards the end, Nifty ended the session with a profit of over two tenths of 1%. Global markets continue to sulk on Tuesday, November 29, 2022; but even though SGX indicated a sluggish start, we shrugged off that negativity completely to start the session on a flat note. In the first few hours, buying in some of the heavyweight names intensified, pushing the index to new highs. We were about to hit another milestone of 18700, but suddenly traders got a little nervous. This resulted in a modest profit posting to cut some of the profits. Finally, Nifty records its highest value ever above the 18600 mark. We started Wednesday's session on November 30, 2022 on a modest note in the absence of global or domestic triggers. In the absence of any major heavyweight participation, we continued the consolidation phase in a small area.  However, at the flick of the penultimate hour, the buying momentum suddenly kicked in, which intensified in the last half hour of trading. With a complete gush across the board, the Nifty rushed toward another 18800 milestone before anyone could even realize it. The adjusted close was just above 18750, adding three quarters of 1% gain to the bull kitty. On Thursday, December 1, 2022, positive global clues led to a decent gap-up open to our domestic market, with the benchmark index Nifty50 continuing its journey north for the eighth straight trading session. The bulls are dominant as they convince the intraday dip to demonstrate resilience; however, some profit bookings were seen later in the session. The technical structure remains lively as Nifty is just about to make higher highs and on another positive close, Nifty settled to new highs of 18812 and raised 0.29%. On Friday 2 december 2022 Bears remained at the helm throughout the day as the benchmark index couldn't pare the morning loss. Domestic stocks came under pressure amid weak global signals, mixed auto sales in November and investors' cautious stance ahead of the release of monthly US payrolls data. Nifty ended its eight-day streak after staging a 4% rally. The index finally closed down 116 points at 18696 levels.

NIFTY BANKNIFTY: STRONG SUPPORT& STRONG RESISTANCE LEVEL

Markets have taken a breather from record highs. We've broken the 8-day winning streak. We've broken the 8-day winning streak. Today we have seen some correction, or we can say a slight correction, as both the Nifty and Bank Nifty indices traded at all-time highs. So the profit posting at the higher levels is undeniable. But that's not a major reversal; The upward trend will continue. It's just a small pause before the next up move as such. So, if you see declines or declines in both indexes, you should definitely use this as a buying opportunity on the declines. On the Nifty front 18,600 will act as an immediate support level from now on, if it breaks this level then we can probably see 100-150 points more correction that could take the Nifty close to 18,400. On the upside currently 18,800 is acting as a very strong resistance level. If it breaks above this level on a closing basis it is likely to definitely trigger an upside rally which could take the Nifty on the higher side towards 19,000-19150. So the outlook will remain bullish because we are only seeing a temporal correction, not a price correction as there is no major correction in stocks. It's just a small, mild correction that we're likely to see over the coming trading session or two. Yesterday it was Bank Nifty that gave the first hints of profit booking at the higher levels but looking at today's trend Bank Nifty is trading flat and we are not seeing any major corrections in bank stocks either. I believe this slight correction is likely to continue, but only up to 42500 -42200 will act as a very strong support zone. From there we are likely to see some sort of positive momentum again that could take Bank Nifty back towards 43200 and above 44500 very soon.

TECHNICALLY SPEAKING

After rising 4%, the market appears to have paused and is likely to consolidate over the next few days. However, the overall trend remains positive with Nifty heading towards the 19,000 zones. Next week markets will be guided by the RBI policy meeting from 5 December to 7 december 2022 and we expect them to moderate their stance on positive macro data and dovish comments from Jerome Powell. Investors would also be eagerly awaiting the outcome of the Gujarat state elections due next week. A result in favor of the BJP would help maintain momentum as it would mean stability and set the stage for elections in 2024. Other key data set for release next week are the OPEC meeting, US & India Service PMI, Europe Q3 GDP and US Unemployment Claims data. The two immediate triggers – the RBI's credit policy next week and the US Federal Reserve's mid-December meeting on the interest rate front – would set investor sentiment in the near term. Sentiment is likely to remain sideways in the near term with 18,500-18,800 being the key range. A decisive break out of one of the bands could trigger a clear directional move in the market. Nifty might face resistance in the 18800-18950 band, while the 18450-18550 band might offer near-term support.