Market likely to extend breakouts this week, sector rotation can't be ruled out

economictimes.indiatimes.com:

Nifty50 surged in all four sessions; it went on to move past the previous lifetime high of 20222.45 and managed to end at a fresh all-time high level. Amid high volatility, the trading range also got wider; the NIFTY moved in a range of 491.55 points through the week. While managing to maintain the gains, the headline index managed to close near its high point with net weekly gains of 473.20 points (+2.39%).

While the markets rose, so did the volatility. The volatility, as represented by INDIAVIX, surged 9.29% to 12.38 on a weekly basis. From a technical standpoint, the Index remains firmly on a rising trajectory. If it continues to advance within its defined and laid path, it may go on to test the upper edge of the rising channel which translates into the levels of 20500—20650 zone. The spikes in the volatility may turn the market choppy; however, there are greater of the breakout getting extended and the Index testing the upper edge of the rising channel. After that, some consolidation cannot be ruled out.


Monday is expected to see a positive and strong start to the week; the levels of 20400 and 20580 are likely to act as resistance. The supports come in at 20080 and 19900 levels.

The weekly RSI is 65.90; it has marked a fresh 14-period high which is bullish. It stays neutral and does not show any divergence against the price. The weekly MACD is bearish and below its signal line; however, it looks on the verge of a positive crossover

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The NIFTY has closed above the upper Bollinger band. Even if it temporarily pulls itself back inside the band, it has laid a strong foundation for a sustainable breakout taking place. This setup has