NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 29 AUG TO 2 SEP 2022

WEEKLY RESISTANCE FOR NIFTY: 17600, 17800, 18000

PIVOT POINT: 17500

WEEKLY SUPPORT FOR NIFTY:  17300, 17200, 17000

WEEKLY CHART FOR NIFTY

Nifty closed higher on 26 aug 2022 Friday, partly reversing the losses of the previous day, ahead of the Jackson Hole speech by the US Fed Chair.  Nifty opened higher, gradually eroded through the day but still managed to close higher. At close, Nifty was up 0.21% or 36 points at 17558. World stocks were narrowly mixed on Friday as traders and investors awaited a speech from Federal Reserve Chair Jerome Powell for clues on the gradient of the U.S. central bank's rate-hike path.India's 10-year bond yield is on course to decline after six sessions on a report of JPMorgan consulting investors about adding India to its bond index.Nifty snapped a five week winning streak and closed 1.12% lower for the week. Outcome of the speech by the US Fed Chair at Jackson Hole on Friday evening is widely awaited for cues on sentiments going ahead. On Tuesday Markets saw heightened volatility as Sensex fluctuated more than 1,000 points on the day before late buying in banking, auto, metals and real estate stocks supported the recovery. Fear of uncertainty is evident in the market as it moves with high volatility, led by weak signals from global peers, while a stronger domestic economy offers some comfort. Global markets were under pressure with a rise in European energy prices and fears of rate hikes ahead of the Jackson Hole meeting. Domestically, gains in banks, autos and metals were offset by sales of IT stocks as the majors scale variable pay due to margin pressures. Benchmark indices closed higher on August 23 amid high volatility. To finish, the Sensex was up 257 points, to 59031 and the Nifty was up 86 points to 17577. Wednesday Bulls and bears continued to battle it out in the domestic market as weak global cues persisted, keeping the market under pressure. The US economy contracted amid muted demand conditions with the service sector witnessing a sharp decline. Markets in Europe experienced a protracted sell-off as a result of investor's concern over the oil crisis and the uncertain growth outlook. Domestic stock markets witnessed a volatile trading session on Wednesday with headline indices dancing between gains and losses. At the end of the day, Sensex added 54 points to settle at 59085 while the Nifty jumped 27 points to close at 17604. Amid heightened volatility, investors reduced their long positions on the F&O expiry Thursday 25 aug 2022 date due to the uncertain global economic scenario. There are concerns that Federal Reserve Chairman Jerome Powell's speech at Friday's Jackson Hole symposium would focus on further rate hikes to curb inflation. Also, the benchmark indices have been close to slipping into negative zones in the last two sessions and hence the correction has been on the expected lines. On a monthly expiration, the Nifty opened on a green note, hitting an intraday high of 17726, but in the last hour of the session saw profit booking from a higher level, closing at 17522 for a loss of 82 points. Ahead of the Jackson Hole symposium, investors around the world are eagerly awaiting the Fed Chair's speech to assess the outlook for monetary policy and whether the central bank can achieve a soft landing for the economy. Benchmark indices ended the highly volatile session lower by 17500 with Nifty. At the close, the Sensex was down 310 points to 58774. Crude oil prices rose as Saudi Arabia suggested OPEC+ supply could be reduced to counter market instability. Although Indian equities are trading at a premium to other emerging markets, consistent support from FIIs is guiding the domestic market. The Bank Index saw selling pressures from higher levels and failed to clear the 39,500 hurdle to the upside. Immediate downside support lies in 38500-38400 area and if broken will result in further selling pressure on the downside. Index needs to break 38,500-39,500 range for crucial trend moves either side.

NIFTY: A STRONG SUPPORT WILL BE @ 17200; STRONG RESISTANCE LEVEL SEEN @ 18000

On weekly charts, Nifty has formed an indecisive doji after a small fall. A breakout above/below 17850-17350 will determine the direction of the Nifty going forward.

TECHNICALLY SPEAKING

Even as domestic benchmarks underperformed most of its Asian peers, the positive momentum, albeit modest gains, continued in yet another volatile session. Cautious optimism prevailed as investors looked forward to the outcome of the Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium later today. Technically, after a sharp correction, the Nifty took support near the 20-day SMA (Simple Moving Average) or 17375 and reversed sharply to hover between 17500-17700 levels. Currently, the index is consistently trading near the 17700 resistance level (which is important Retracement level) and has also formed a lower top formation on intraday charts, which supports further correction from the current levels. For bulls, 17700-17800 would be the immediate resistance level and above which the index could move up to 17900-18000. On the flip side, 17500 would be the crucial support zone and on a fresh round of selling, the index could trade below 17500 and could retest the level of 17300 and on further down side the index could retreat to 17200.