WEEKLY RESISTANCE FOR NIFTY: 11850, 11950, 12050
PIVOT POINT: 11750
WEEKLY SUPPORT FOR NIFTY: 11600, 11550,
11500
WEEKLY CHART FOR NIFTY
DAILY RESISTANCE FOR NIFTY: 11800,11850,11900
PIVOT POINT:11700
DAILY SUPPORT FOR NIFTY : 11650,11600,11550
DAILY CHART FOR NIFTY
It was yet another week of consolidation for our markets in
the absence of major triggers. Index started off well with some hope of
surpassing the stiff hurdle of 12000, but once again the attempt turned
unsuccessful. During the remaining part of the week, index kept vacillating
around the lower band of the range to eventually conclude tad above the 11800
mark. Although it was a week of consolidation for our markets, the overall bias
remained on the negative side and hence, any intra-week pull back was getting
sold into. Now, with this price development we can see the trading range
getting shrunk further and whenever this happens, soon we get a breakout (on
the either side) from the congestion zone. On the lower side, 11770 is the
level to watch out for. Any sustainable move below this would trigger sell off
to head towards 11625-11555 levels. However, looking at the broader picture, we
are still hopeful and expect the market to breakout in the upward direction. On
the higher side, 11955-12000 has become a sturdy wall. At this juncture, the
pragmatic strategy would be to stay light and wait for breakout from the
mentioned range to create aggressive positions . Monday
morning, the global set up looked a bit encouraging and hence, in-line with
Asian peers, we started proceedings for the week slightly higher after Friday’s
tail end correction. However, it was merely a formality as we saw index
correcting immediately to pare the opening lead. This was followed by a
continuous decline throughout the remaining part to eventually conclude well
below the 11700 mark. Monday’s sharp selloff was followed by a flat opening in
our markets on Tuesday. The index then witnessed a range bound trading with a
positive bias for the first half. The second half was however very volatile as
we witnessed volatile swings on both sides with butchering seen in many midcap
counters. The index eventually ended near the opening levels with marginal
gains of 0.17% tad below 11700 levels. Wednesday, our markets witnessed a
roller coaster move with wild swings seen on both sides of the trend. The index
started with a gap up opening which got extended to test the 11800 mark however
in the midsession we witnessed a sharp selloff which dragged Index to mark
intraday low of 11625. During the said selloff there was carnage seen in many
midcap counters. Eventually quite similar to the previous session Index
witnessed a strong bout of buying in the last half an hour to push prices
higher to close unchanged at 11691. Despite Nifty suggesting a positive start,
we had a gap down opening to surprise most of the market participants on Thursday.
There was some nervousness seen in the initial trade, but all of a sudden
strong buying emerged at lower levels which not only continued but also
accelerated as the day progressed. In this course of action, Nifty went on to
thrash all intraday hurdles and eventually concluded the weekly expiry well
above the 11800 mark by clocking smart rally of more than a percent. Market ended lower on Friday, wiping out previous session's gains,
amid weakness in auto stocks, as uncertainty around the US-China trade
negotiations and rising oil prices outweighed investor euphoria around the US Federal
Reserve’s hints at future rate cuts.
NIFTY: A STRONG SUPPORT WILL BE @ 11600; STRONG RESISTANCE LEVEL SEEN @12000
