Dear patrons, the week gone by was lackluster on the indices with focus shifting to stock specific action. The benchmark index participants were in a consolidation phase and midcaps along with small caps were in the limelight with both indices making life time highs.
Globally also it was a lack luster week, with almost all markets trading in a range. On news front as well, there was no event which made headlines. Something is surely brewing in the equity markets across the globe and by all means it looks like it is going to be good for investors.
Foreign Institutional Investors had a muted participation last week barring last trading session where they turned aggressive buyers. Domestic Institutions have been buyers through the last week. Coming week being truncated and expiry week as well, should see volatility spiking up and swift movement in both directions can be seen.
Let us look at what exactly the indices did last week and try to anticipate what is in store for the next week.
We had stated last week that Nifty has resistance around 19850-19900 levels and support around 19300. The Nifty made a low of 19380 and a high of 19875. For the coming week Nifty has support around 19600-19700 failing which, it may drift towards 19400. Nifty may surprise on the upside though, owing to expiry week. Short covering along with fresh buying may lead Nifty towards new highs.
BankNifty, which was sedate for the first half of the week managed to hold its head above the crucial 43400 mark and looks set for an up move with resistance around 44000. Closing above 44000 should open doors for further up move towards 45000. BankNifty appears to be a strong candidate for short covering next week on account of monthly expiry.
Traders need to be nimble footed as moves could be swift on either side. Mantra remains the same for investors though, keep accumulating good quality stocks.
Stay Invested!!!
“The intelligent investor is a realist who sells to optimists and buys from pessimists.”~ Benjamin Graham
P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.
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