Market outlook for the week: Nifty awaits a decisive range breakout to commence rally
By Chandan Taparia
The Nifty50 is facing a hurdle over the past couple of days near to its psychological barrier at the 9,000 mark and it is just 2 per cent away from its lifetime high of 9,119, which was registered on March 4, 2015.
The index knocked the 9,000 mark at the beginning of the month by hitting a high of 8,992. However, it never saw a daily close above 9,000. If that happens, it would be a positive trigger sentimentally.
The Nifty50 has been consolidating between 8,860 and 9,000 levels from last 13 sessions and is awaiting a decisive range breakout to commence the next leg of rally. If it holds above 9,000, it could start a fresh upward move towards 9,119 and then 9,250 levels, while on the downside, multiple supports are seen at the 8,860 level.
Maximum Call open interest was intact at strike price 9,000, but a positive opening above 9,000 could force unwinding of Call options with short covering activities, which may trigger fresh momentum.
Overall, the index has been forming higher top and higher bottom and supports are gradually shifting higher. However the momentum indicators are placed near the overbought zone, but as long as the price rise does not halt or the bulls do not lose their grip, the immediate positive trend may remain intact.
The Bank Nifty has been forming a narrow range weekly candle over the past three weeks. It has multiple supports near the 20,450 level. If it holds above 21,000, it may extend its upward move towards 21,500 and 21,600 levels.
Among specific stocks, we have a positive view on BEL, Britania, HCL Tech, L&T and Bata India, which are forming positive price patterns along with accumulation of long positions.
(DISCLAIMER: Views expressed above are the author's own)
The Nifty50 is facing a hurdle over the past couple of days near to its psychological barrier at the 9,000 mark and it is just 2 per cent away from its lifetime high of 9,119, which was registered on March 4, 2015.
The index knocked the 9,000 mark at the beginning of the month by hitting a high of 8,992. However, it never saw a daily close above 9,000. If that happens, it would be a positive trigger sentimentally.
The Nifty50 has been consolidating between 8,860 and 9,000 levels from last 13 sessions and is awaiting a decisive range breakout to commence the next leg of rally. If it holds above 9,000, it could start a fresh upward move towards 9,119 and then 9,250 levels, while on the downside, multiple supports are seen at the 8,860 level.
Maximum Call open interest was intact at strike price 9,000, but a positive opening above 9,000 could force unwinding of Call options with short covering activities, which may trigger fresh momentum.
Overall, the index has been forming higher top and higher bottom and supports are gradually shifting higher. However the momentum indicators are placed near the overbought zone, but as long as the price rise does not halt or the bulls do not lose their grip, the immediate positive trend may remain intact.
The Bank Nifty has been forming a narrow range weekly candle over the past three weeks. It has multiple supports near the 20,450 level. If it holds above 21,000, it may extend its upward move towards 21,500 and 21,600 levels.
Among specific stocks, we have a positive view on BEL, Britania, HCL Tech, L&T and Bata India, which are forming positive price patterns along with accumulation of long positions.
(DISCLAIMER: Views expressed above are the author's own)
