Dalal Street Week Ahead: Guard profits at higher levels, rotate investments in fatigued market
Nifty kept marking incremental highs, the intraday trend remained practically absent.
The volatility also did not change much as compared to last week. The India Vix inched higher by just 2.79% to 13.18 on a weekly basis. The weekly trading range for the Nifty too remained much capped. The index oscillated in just 268.90 points range before posting a negligible weekly gain of 35.50 points (+0.15%).
The coming week is an expiry week for the monthly derivative series. Besides this, over the past sessions, the markets are exhibiting clear signs of fatigue. It has frequently formed weak candles on the daily chart raising possibilities of it taking a breather and showing some measured corrective retracement. Going by the derivatives data as well, Nifty might face strong resistance in the 23,600-23,650 zone.
This would mean that even if modest upsides are seen, a sustained and trending up move cannot be expected unless the zone of 23,600-23,650 is taken out convincingly. Therefore, all moves on the upside
should be used for guarding profits at higher levels.
A quiet start to the trade is expected on Monday; the levels of 23,650 and 23,790 may act as resistance points for Nifty. The supports come in at 23,300 and 23,180 levels. The weekly RSI is at 68.54; it continues to show bearish divergence against the price as it is not marking fresh highs along with the price. The weekly MACD is bullish and stays above the signal line. A spinning top has emerged on the candles.
This not only reflects the indecisiveness of
