NIFTY WEEKLY PREDICTION FOR 4 DEC TO 8 DEC 2017

WEEKLY RESISTANCE FOR NIFTY: 10250,10300,10350,10400

PIVOT POINT: 10320

WEEKLY SUPPORT FOR NIFTY:  10100,10050,10000,9950

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 10180, 10220, 10250

PIVOT POINT: 10200

DAILY SUPPORT FOR NIFTY:  10120,10100,10070,10050

DAILY CHART FOR NIFTY

Lackluster trading week ended on negative note. The data failed to lift sentiment fiscal deficit reached 96% of the budgeted target for the fiscal year ending in March 2018. Both indexes were down around 1.7 % this week, heading for their biggest weekly loss since late September. The Sensex plunged over 316 points and the Nifty holds 10100 level  as economic growth data came in largely as expected, failing to boost a market weighed down by concerns about the country's fiscal deficit and global risk factors such as rising crude prices.

GDP GROWTH

GDP grew 6.3% in the July-September quarter, with robust expansion in manufacturing, electricity production and trade and hotels sectors. This is higher than the 5.7% GDP growth in the April-June quarter, but lower than the 7.5% growth in the second quarter of last fiscal.

The Nifty future took a sharp cut on Friday and settled the week at the 10143 level. For a good part of the week, the 10250 level was providing a major support to the index. But it closed below the crucial support on Friday. This may trigger further correction in the nifty. The Nifty future corrected around 300 points this week. It continued its weakness whole week and corrected towards 10100. If it sustains below 10100, short-term weakness could be seen towards 10050 and a swing low of 10000. The index could see the immediate hurdle at 10250. The index has settled below the 20-day moving average and was on the verge of breaching its 50-day moving average. The pace with which the Nifty future has fallen suggests the trajectory of the index might have changed its course to the downside. Thursday’s move has erased gains of last seven sessions, which the bulls added laboriously after a gap up opening on November 17. In such a scenario, if the fall continues, then it should take the indices below 10000 level to complete the corrective pattern.

TECHNICALLY  SPEAKING

The market will recovers on Monday without much downside; the bulls are likely to be in a position to recover lost ground. The Reserve Bank of India (RBI) is also meeting next week at a time of rising concern about a rally in crude prices, which rose following OPEC's decision to extend production curbs. The expectations are like that the central bank to keep rates on hold. Since there was a sharp run-up in the markets last week, there is a bit of profit-booking. Even though the GDP number is along expected lines, there is concern building up on the fiscal deficit front.  Nifty closed the week on negative note below support level 10150 losing around 104 points at 10121. 

The support for the index lies in the zone of 10150 to 10100 where break out levels for the index is lying. If the index manages to close below these levels then the index can drift to the levels of 10050 to 10000 where short term moving averages are lying. During the week the index manages to hit a low of 10000 and close the week around the levels of 9950. Minor resistance for the index lies in the zone of 10300 to 10350. Resistance for the index lies in the zone of 10400 to 10450 where trend-line joining highs.. If the index manages to close above these levels then the index can move to the levels of 10500 to 10550. Broad range for the week is seen from 10100 on downside & 10450 on the upside.