Dalal Street Week Ahead: Nifty's winning streak continues, but resistance looms
Nifty consolidated sideways in four out of five sessions in the week that went by; it was the last trading session of the week that saw a strong trending move that took the index to a fresh lifetime closing high. The trading range remained wider on the expected lines; the index oscillated in the 563.70 points range through the week. Volatility inched higher; the India VIX rose 1.91% to 12.79 on a weekly note.
Following a largely quiet but ultimately trending week, the
headline index closed with a net weekly gain of 434.45 points (+1.71%). The markets are now in uncharted territory. The uptrend remains absolutely intact and shows no signs of a letup. However, that being said, the strikes of 26,000 show a maximum accumulation of Call AI making this level a strong potential resistance for the markets.
We also have a monthly derivatives series expiry coming up; we will have the sessions dominated by rollover-centric moves over the coming week. The markets have a strong possibility of facing consolidation near 26,000 levels at some point in time. It would be crucial to watch the behavior of the Index between current levels and higher.
The coming week is likely to see the levels of 25,850 and 26,000 acting as potential resistance points. The supports come in at 25,600 and 25,450 levels. The weekly RSI stands at 74.50; it stays mildly overbought and also shows bearish divergence against the price. The weekly MACD is bullish and stays above its signal line.
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