Weekly Market Outlook for 26 June to 30 June

Nifty started the week gone by on a positive note with an expectation to hit a new record high. Although the Sensex touched that milestone, Nifty just missed to make that headline and it witnessed some correction from the high in last couple of sessions. The benchmark index ended the week tad above 18750 with a weekly loss of about nine-tenths of a percent.

Nifty Today:

Nifty resisted around the previous high around 18880 and witnessed some profit booking towards the end. The index has ended the week right around its ‘20 DEMA’ support which is placed around 18650. This average has acted as a support for Nifty in this entire upmove since the start of April and thus, it will be crucial to see if the index breaks that. In such a case, we can expect some price wise correction towards the next support which will be seen in the range of 18500-18450. On the flipside, a breakout above 18880-18900 will lead to a resumption of the uptrend. The Bank Nifty index continued its consolidation phase and resisted around 44000-44100 range throughout the week.  This index has already been going through a time-wise corrective phase as it has consolidated in range for this entire month so far. While the PSU Banks are trading around its crucial 89 EMA, the private sector heavyweights such as HDFC Bank and ICICI Bank have already corrected and are trading around supports. Thus, the private sector heavyweights could play a pivotal role in driving the momentum in the banking index. One can look to form long positions above 44100 as that would confirm a resumption of the uptrend in this space. 

                                                                      Nifty poised at crucial short term support, profit booking in mid-caps   

The Midcap stocks witnessed some profit booking in last couple of sessions. However, this was much expected as the momentum readings on the Nifty Midcap100 index were highly overbought. The readings have started to cool-off and thus, one should avoid chasing the stocks at higher levels and rather look for buying opportunities on declines when they approach the support zones.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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