Markets weak; caution advised amid potential rebound and selling pressure
Nifty 50 extended its corrective decline. Over the past four sessions of a truncated week, the Nifty 50 index remained largely under selling pressure. Throughout the past week, the markets continued with their process of mean reversion.
The volatility, though, did not show any major surge. The volatility gauge, IndiaVIX rose by a modest 2.11% to 14.77. The trading range over the past week stayed wider on the expected lines. The Nifty oscillated in a range of 852 points. It closed with a net weekly loss of (-615.50) points (-2.55%).
The coming week is truncated as well. Wednesday, November 20th is a trading holiday due to Assembly Elections in the state of Maharashtra. The markets are undergoing a painful mean-reversion process. As of now, though the Nifty has closed a notch below the 200-DMA which is currently placed at 23555, it has managed to defend this important support.
Beyond this, the Nifty is within striking distance of the 50-week MA which presently stands at 23253. Even if the index ends up testing this level, the long term primary uptrend would still stay intact.
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