Market Outlook for 16 July 2024
Weekly Market Outlook for 6 May to 10 May
Last Updated: 6th May 2024 - 10:30 am
Nifty started the last trading session on a positive note, but it witnessed significant selling pressure from the previous resistance of 22770-22800 zone. The index corrected sharply upto 22350 level, and then recovered marginally to end the week just below 22500.
Nifty Today:
Nifty registered a new record high in the week gone by, but the volatility has been on the rise as the index is witnessing stiff hurdle around 22800 mark. In last one month, the index has been unable to surpass this hurdle inspite of positive momentum in the broader markets which has led the midcap and the small cap indices higher. Hence, although the short term trend remains positive, one should be very specific and a bit cautious as well until we see a breakout 22800. Nifty index has formed a ‘Doji’ candle on the weekly charts. It has traded in a broad range since last couple of months and such moves could continue in the near term till the general elections outcome. The rise in volatility can be anticipated by INDIA VIX, which was up 33 percent during the week. The FIIs data however, turned positive as they formed long positions due to which their net positions ended on the long side of the trade. The RSI oscillator which gauges the market momentum, is positive on the daily chart but is hinting at a corrective phase within an uptrend on the lower time frame charts.
In the coming week, 22300 will be seen as an important support which if broken, then it could lead to a down move towards 22000-21900 zone. On the higher side, a breakout above 22800 could then lead to a move upto 23000-23050.
Nifty turns lower ahead of weak global cues
Therefore, traders are advised to focus on stock-specific actions and keep an eye on the development of option chain data, earnings numbers, as well as global events such as geopolitical tensions, the dollar index, bond yield movements, and commodity prices.
Nifty, Bank Nifty Levels and FINNIFTY Levels:
NIFTY Levels | SENSEX Levels | BANKNIFTY Levels | FINNIFTY Levels | |
Support 1 | 22290 | 73550 | 48500 | 21620 |
Support 2 | 22170 | 73100 | 48130 | 21550 |
Resistance 1 | 22730 | 74600 | 49470 | 22050 |
Resistance 2 | 22800 | 74800 | 49600 | 22130 |
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