Nifty: Trading for the week started with a flat opening and Nifty nosedived sharply towards its immediate support of 9850. Subsequently, we witnessed quite lethargic momentum throughout the week. In the process, Nifty concluded the week with a loss of 0.50%.
- Due to sharp fall on Monday, Nifty entered inside the Symmetrical Triangle pattern which eventually diminished the bullish sentiment.
- During the week, the trading range shrunk further and Nifty oscillated in a range of 10000 / 9850.
- On a daily as well as on a weekly chart, the Bollinger Band has squeezed significantly hence volatility is likely to increase in a coming trading session.
- The daily RSI (14) failed to cross the daily 45-EMA which was eventually trend line lower.
- Going forward, 9988 / 10015 zone will act as a stiff hurdle and only a sustain move above this level will attract fresh buying interest, in that case Nifty will retest its all-time high of 10138. On the flip side, 9850 will act as a crucial support and any break below this level lead to sharp sell-off and Nifty will slide lower towards 9685.
Bank Nifty: The Nifty Bank index snaps three weeks winning strakes and eventually concluded with a nominal loss of 0.26%.
- During the week, Bank Nifty corrected sharply and such price move was against our expectations as we were expecting index to surpass the 24500 levels. Subsequently, the trading range shrunk further and index traded in a tight band throughout the remaining part of the week.
- Looking at the daily chart, we are seeing series of narrow range candle also the daily as well as the weekly Bollinger Band has squeezed significantly.
- Looking at the 120-minute chart, RSI (14) is constantly resisting near 60 mark post its break of 40 levels.
- In coming week, traders are advised to keep a tab on 24150 / 24100 zone as any break below this zone will lead to a sharp correction and in that case, we may see Bank Nifty to slide lower towards 23850 / 23600 levels respectively. On the other side, 24500 / 24600 zone continue to act as a stiff resistance and only a sustainable move beyond this level will allow index to rally higher towards 24900 / 25200 levels respectively.
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