Dalal Street Week Ahead: Nifty to stay rangebound; protect profit at higher levels
Nifty chose to remain in a defined range; the trading range got narrower and the Nifty oscillated in the 204.65-point range while defending the most immediate support of the 20-week MA. The benchmark index closed with net weekly gains of just 62.90 points (+0.32%).
Although some intraday spikes of volatility were observed, India VIX declined by 4.21% to 11.33 on a weekly basis. While no major technical event/development took place over the past five sessions, the point of focus remains the 20-week MA which is acting as the most immediate short-term support for the Nifty.
This 20-week MA is placed at 19570. As long as the index can keep its head above this point on a closing basis, it will continue to consolidate. However, any violation of this WMA on a closing basis will invite incremental weakness for the markets.
This makes the 19500-19570 the most immediate and important support zone for the Nifty.
We have a long weekend this time with Monday, 27th November being a trading holiday on account of Guru Nanak Jayanti. The coming week also has a monthly derivatives expiry lined up as well. Tuesday will see the markets starting by adjusting themselves to the global trade setup.
The levels of 19900 and 20030 are likely to act as potential resistance levels. The supports are expected to come in at 19610 and 19480 levels. The weekly RSI is 59.94; it continues to stay neutral while not showing any divergence against the price.
The weekly MACD stays bearish and remains below its signal line. No major formations on the candles were seen.
The pattern analysis of Nifty on the weekly charts shows that the index continues to inch higher while staying inside a rising channel. Having said this, in the previous week, the index has
