Weekly Market Outlook for 14 August to 18 August

In the week gone by, Nifty consolidated in a range for most part of the week, but it failed to surpass its hurdle of 19650 during mid-week pullback and corrected towards in the last trading session to end the week well below 19500 with a weekly loss of about half a percent.

Nifty Today:

From the recent high of 19990, Nifty has been in a corrective phase since last three weeks. However, the broader markets have continued to rally higher and the Midcap index is still registering new highs indicating buying interest in broader markets. The data is not optimistic since the start of this month as FIIs have not been buying in the cash segment and they have around 60 percent of the positions on the short side. The volatility in the global markets, sharp depreciation in the INR,  recent increase in bond yields have been some of the factors which have kept equities on toes post the recent rally of four months. Technically, this downmove just seems to be a correction within an uptrend but there are no signs of it being over yet. For the Nifty index, 19650 was the crucial hurdle which the index was unable to surpass and till this is not taken out, we are not out of the woods yet. Also, the midcap index is in an overbought zone and if the benchmark doesn’t resume its uptrend soon, then this space could witness some unwinding in the coming week. Hence, traders should trade with a stock specific approach and avoid aggressive trades till we get confirmation on a resumption of the uptrend.

 Corrective phase in Nifty since three weeks, 19650 becomes immediate hurdle

As far as levels are concerned, 19650 will be the crucial resistance above which, the benchmark will confirm a resumption of the uptrend. On the lower side, immediate support is placed around 19350 followed by 19290-19220 range. If this crucial range gets broken, then one should be prepared for a retest of the medium term support range seen in 19000-18800 range. 

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

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