Dalal Street Week Ahead: Will the bulls keep charging or pause for breath
The markets traded in the previous week on analyzed lines. It was largely expected that the markets may not see any runaway upmove but may keep the overall trend intact. In line with these expectations, the Nifty traded in a defined range ending the week on a modestly positive note. The trading range also stayed limited; the Index oscillated in a 492.65-point range. The volatility inched higher; India Vix rose by 1.75% to 15.23. The headline index closed with a net weekly gain of 126.05 points (+0.57%).
Saturday had a short trading session; however, despite a strong closing on Friday, the markets continue to face the same resistance levels that they had during the previous week. Going by the Options data, the resistance levels have shifted slightly higher. However, despite a fresh high, the markets are slated to consolidate once again at current or higher levels. The current technical structure makes it mandatory to focus and pay attention highlighting the need to protect profits at higher levels. It would be important not to chase the rally blindly but rather protect profits at higher levels and rotate the stocks and sectors appropriately.
For the coming week, the level of 22400 continues to stay as an important resistance level followed by 22650. The supports come in at 22050 and 21850 levels. The coming week is expected to see the trading range getting a bit wider than usual. Some increment in volatility cannot be ruled out as well.
The weekly RSI is 73.58; it remains in the mildly overbought zone but also
