Nifty was down by 0.5%. On daily chart, Nifty formed lower high and lower low sequence, but sailing above 20 EMA which has acted as support for market in earlier episodes. For a coming week, Nifty has a strong support band in the range of 19,500 to 19,350 zone whereas it has stiff resistance above 19,800 to 19,850.
Fresh upside movement can be expected above 19850 level. Bank Nifty has also moved below previous 6 days range. Bank Nifty is very close to support of 45,300-level.
But moving below 45300 level can lead to further pain up to 44,600-level. Index has stiff resistance at 45800 level followed by 46300 level. Broader view for the market is bit indecisive as mild reversal has observed but it has not confirmed yet.
Trader need to be cautious with above mentioned levels. However, good movement has been observed in some specific sector and stocks. In previous week Pharma, realty and CPSE, metal and media sector has shown good performance whereas selling pressure observed in heavy weight sector like IT, Private bank and FMCG space.
Nifty Daily Chart This week, metal stocks were in action. Many stock has given a breakout from long consolidation and bullish continuation sign. JSWSTEEL has given a breakout from 2 years consolidation patch which is a bullish development.
In the week gone by, some cement counters reacted positively from support levels. Indiacem has strong positive price structure across all the time frame. Stock is taking support at long term moving average followed by breach of falling channel.
Stock has retested the breakout level which is healthy bullish sign. Pharma stocks are already in positive movement. Granules stock has breached around 2 years falling trendline.
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