NIFTY WEEKLY OUTLOOK FOR 9 JANUARY TO 13 JANUARY 2023

WEEKLY RESISTANCE FOR NIFTY: 18000, 18200, 18400

PIVOT POINT: 17800

WEEKLY SUPPORT FOR NIFTY:  17700, 17600, 17500

WEEKLY CHART FOR NIFTY

Market started the year from 2^nd January 2023 Monday marginally in the green. We did see some ambiguity in the first half; but with few heavyweights attracting strong buying around the midsession, Nifty picked up decent momentum in the upward direction. Eventually, we ended the inaugural session around day’s high by adding half a percent to Friday’s 30 December 2022 close. We had a soft opening on 3^rd January 2023 Tuesday as indicated by the SGX Nifty early in the morning. Similar to previous sessions, the buying emerged at lower levels; but the intensity was clearly lacking. Nevertheless, Nifty managed to claw back above 18200 to finally confirm a daily close above it after nearly 6-7 sessions. We started the 4 January 2023 Wednesday session on a flat note yesterday with mildly negative bias. However, as the day progressed, market became nervous which resulted in a sustained selling across the board. With no major recovery, Nifty concluded the session at lowest point of the day convincingly below 18100 by shedding over a percent from the previous close. Honestly speaking. We had a promising start on 5 January 2023 Thursday as indicated by the SGX Nifty early in the morning. Within few trades, things came to normalcy as we pare down early lead and started correcting in line with previous session. During the first half, although Nifty showed some resilience as compared to the banking index, the selling augmented around the mid-session. In this process, Nifty sneaked below its key support of 17900. Fortunately, with some tail end recovery, Nifty managed to recoup some losses and eventually ended the session tad below the 18000 mark. Domestic benchmark indices edged lower on Friday 6 January 2023, after strong US jobs data indicated the Federal Reserve would have to keep hiking interest rates. Sensex settled at 59900 falling 452. Nifty ended at 17859 losing 132 points. Asian shares were mixed Friday after Wall Street benchmarks fell on worries that the U.S. Federal Reserve will keep raising interest rates. European stocks struggled to maintain gains on Friday as traders braced for US jobs data due later that will help chart the path forward for Federal Reserve monetary tightening.

NIFTY BANKNIFTY: STRONG SUPPORT& STRONG RESISTANCE LEVEL

Nifty almost tested the recent lows of 17779 and bounced up a little. On a weekly basis, Nifty lost 1.36% falling in 4 out of 5 weeks and gave up almost the entire gains of the previous week. Nifty on breaching the recent lows of 17,779 could head towards 17500 while 18200 could act as a resistance in the near term.

TECHNICALLY SPEAKING

The Nifty has managed to close below 17900, an important psychological level, for the last 2 consecutive days, suggesting weakness. A break above 18000-18200 will act as a crucial zone for Nifty to start its upward journey. Bank Nifty too has failed to close above 42500 levels and this weakness has persisted the entire week. Indicators such as RSI and MACD are losing strength suggesting that this weakness will persist. Open interest data indicates, on the call side the highest OI was witnessed at 17900 followed by 18000 strike prices while on the put side, the highest OI witnessed at 17700 followed by 17600 strike price. On the other hand, Bank Nifty has support at 41800 levels while resistance is placed at 42800.