Nifty has closed at a fresh weekly closing high. The trading range too got wider; the index oscillated in a 680.20-point trading range. Volatility too plummeted significantly; the India VIX came off 17.53% to 12.55. While setting a distinctly contrast undertone as compared to the week before, the headline index posted weekly gains of 504.35 points (+2.03%).
As we step into the fresh week, the undercurrent evidently remains strong. However, even with the buoyant trend and with the markets showing no signs of a letup, it is time that we follow this trend from now on with the utmost amount of caution.
The Index stays significantly deviated from its mean, the 50-week MA is over 3000 points below the current close. From a very short-term perspective, the Nifty has dragged its support levels higher to 25000; so long as the index stays above this level, it may consolidate at higher levels. Any slippage below this point might see some deeper consolidation in the markets.
In any case, if the trend continues the way it is right now, the current trend may get a bit unhealthy leaving the markets vulnerable to corrective bouts from higher levels.
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