It’s been a week of consolidation for our markets but the encouraging point was market managed to maintain their positive mood throughout the week in a gradual manner. In terms of intraday activity, Friday was the only day when we saw some action in the market as rising hopes over Standard and Poor’s (S&P) rating (for India) boosted traders’ sentiments.
During the entire week, we have been mentioning the trading range of 10,250 – 10,368 for the index. After four days of struggle, the Nifty finally managed to break the upper range. But, the kind of buying momentum ideally should have been witnessed after a breakout was clearly lacking. Hence, we need to relook the situation and will have to revise the upper range a bit. Now, if we look at the hourly chart, we can observe Nifty facing a resistance on concluding day precisely at the 78.6% retracement level (10,405) of the recent down move. Hence, the bullish momentum can be witnessed only above this mentioned resistance of 10405. On the flipside, 10,350-10,307 would now be seen as a key support zone; because, violation of this may apply brakes on the recent optimism.
Barring last day, we saw individual stocks soaring to a great extent during the week and we advised on following stock centric moves. But, on Friday, there was no clear outperformance from individual stocks as well. Hence, the coming week being the expiry one, first half would be very important for our market as we expect some volatility to pick up and hence, we may see some clear moves thereafter.
No comments:
Post a Comment