The week gone by:
We were 'Bearish' last week and advised Caution on longs. Nifty broke 8070 - 8000 and almost hit 7840 (low for the week 7841.80). The Index was very volatile on Friday, hitting the low for the week and rose sharply (nearly 150 points) to close at 7968.85.
Our 'Bearish' view on Bank Nifty also proved right as the Index nearly lost 7% (Down 1000 points) but rose along with Nifty on Friday to close 3.5% down.
The week ahead:
The Index has touched some important downward target at 7840 and reversed. Any move above the 'trend deciding level' for next week at 7990 - 8000 and close above 8020 will take the Index to 8140. The Index faces stiff resistance at 8160 - 8180. We don't see a move beyond this level for this truncated week. Outside upside target is at 8308.
The Index has received support consistently near the 50 day moving average through the year. The 50 day simple and exponential moving average are placed between 7880 - 7885. The Index if it breaches this support zone will move down to 7840 - 20. Though our view is slightly bearish, any slide to 7672 will be a bonus for bears.
The Candlestick patterns are forming continuation patterns and the weekly momentum indicators are at the brink to falling into neutral zone from over bought zones.
We were 'Bearish' last week and advised Caution on longs. Nifty broke 8070 - 8000 and almost hit 7840 (low for the week 7841.80). The Index was very volatile on Friday, hitting the low for the week and rose sharply (nearly 150 points) to close at 7968.85.
Our 'Bearish' view on Bank Nifty also proved right as the Index nearly lost 7% (Down 1000 points) but rose along with Nifty on Friday to close 3.5% down.
The week ahead:
The Index has touched some important downward target at 7840 and reversed. Any move above the 'trend deciding level' for next week at 7990 - 8000 and close above 8020 will take the Index to 8140. The Index faces stiff resistance at 8160 - 8180. We don't see a move beyond this level for this truncated week. Outside upside target is at 8308.
The Index has received support consistently near the 50 day moving average through the year. The 50 day simple and exponential moving average are placed between 7880 - 7885. The Index if it breaches this support zone will move down to 7840 - 20. Though our view is slightly bearish, any slide to 7672 will be a bonus for bears.
The Candlestick patterns are forming continuation patterns and the weekly momentum indicators are at the brink to falling into neutral zone from over bought zones.
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