IGI Logo

Sensex (60261) / Nifty (17957)

During the last week, the markets were under pressure and in the last few sessions, prices did test the recent swing low of 17774. Fortunately on Friday, the heavyweights came for a rescue at lower levels, resulting in a smart recovery to reclaim 17950 on a closing basis.

It was indeed a challenging week for the market participants as the trending moves were clearly missing. Nifty remained in a range and whenever it seemed a trend has established, the market would reverse in the opposite direction. We, however, remained glued to our stance and instead of swaying with the market moves we considered buying on the lower side of the range. On the weekly chart, we can see a ‘DOJ’ pattern that indicates uncertainty, and it seems market participants are waiting for some trigger for the next directional move. In our sense, the December month swing low around 17750 is acting as a fortress for the bulls and as long it holds; one should continue with the buy-on-dip approach. On the flip side, as the trading range is getting coiled, the resistance levels are shifting lower. On the hourly chart, we can see a trend line resistance around the 18000 – 18050 levels, and prices have ended just below the same. Going ahead a sustained trade beyond the same can trigger positive momentum in this week. The stiff hurdle remains around 18300 which once broken can resume the primary uptrend.

Nifty Bank Outlook (42371)

The Bank Nifty index witnessed a lackluster week of trade wherein it stayed in a slender range of 1000 points throughout the week. It moved in line with the benchmark index and concluded the week on a muted note with a mere gain of 0.43 percent to settle a tad below the 42400 level.

On the technical aspect, the index made a ‘Doji’ candlestick pattern on the weekly chart, suggesting indecisiveness in the banking space. On the weekly chart, the retracement of 38.20% remains the sacrosanct support placed around the 41560 odd zone, and till it withholds above the same, we do not expect any further aggravation in the sell-off. On the contrary, a series of resistances could be seen starting from 42600 to 43500 levels in the comparable period. Hence, one needs to keep a close tab on the mentioned levels amid the upcoming earning season and avoid aggressive trade till the trend gets clear.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.angelone.in/ 
SEBI Regn. No.: INZ000161534

Above views are of the author and not of the website kindly read disclaimer