Weekly Market Outlook for 10 July to 14 July

In the week gone by, Nifty rallied higher for most part of the week and marked another milestone above 19500. However, Nifty gave up some of the gains in last trading session as some profit booking was seen and the index ended at 19330 with weekly gains of three-fourth of a percent.

Nifty Today:

Our markets continued with the upmove during the week and registered new milestones. However, due to sharp rally in last few days, the momentum readings have reached the overbought zone and needs to cool-off which can either be seen through some time-wise or price-wise corrective phase. Hence, although the trend still remains positive, some consolidation or a correction could be seen in the indices in the coming week. The global cues were a bit negative on Friday morning as the U.S. markets corrected and the 2 year U.S. Bond-yield witnessed a sharp surge post the recent Fed comments. The INR too depreciated sharply from 81.90 to 82.80 in just a couple of trading sessions and these factors kept traders on edge on Friday leading to some profit booking. Now, for Nifty 19300 is the crucial support and we have ended the week just above that support. If the index breaks this at the start of the week, then we could see some retracement in the near term towards 19000 mark. However, since the broader market trend is strong, one should read this as just a pullback move within an uptrend and look for buying opportunities when the index approaches the support zone. On the higher side, the immediate resistance for the index is seen around 19450-19500 which is the 127 percent retracement levels of the previous corrective phase.

    Global factors led to some profit booking towards end of the week

Even though the index witnesses some time or price correction, the stock specific rotation will continue as the over trend for the market is positive. Hence, traders are advised to look for stock specific opportunities in the coming week.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

​