Bullish Momentum Expected After Recent Profit Booking

The Nifty index experienced some profit booking recently, but there has been a significant drop in selling volume, decreasing from last week’s 31.66% to 9%. This suggests that in the coming week, selling pressure may not intensify.

Last week, Nifty opened at 19,678.20, reaching a high of 19,766.65, a low of 19,492.10, and ultimately closing at 19,638.30, with a loss of 35.90 points. Bears attempted to restrain the market, but bulls put up a fight to control the damage on Nifty.

On the weekly chart, Nifty formed a Bullish Dragonfly Doji pattern. Despite breaching all three support levels, Nifty reached a low of 19,492.10 and surpassed the resistance level of 19,750, reaching a high of 19,766.65. Nifty is currently maintaining the 19,600 level on a closing basis, which is acting as short-term support. The RSI has turned positive, and all major indicators and oscillators are positive on the daily chart. Interestingly, the averages are supportive of an uptrend.

Nifty Bank closed at 44,584.55 which is above the support level, indicating a rebound is likely. Bulls have put up a strong fight to sustain the Nifty level of 19,600, which may convert to an uptrend in the coming week.

On Friday, Nifty gained 115 points, closing at 19,638.30 compared to the previous day. If Nifty does not breach the 19,500 level, we can expect a rebound. Nifty’s resistance levels are 19,750-19,825, with support at 19,500-19,350. 

Disclaimer: All views and analyses expressed here are for reference only. Specific trading involves a substantial risk for traders/investors must consider all risk factors of their personal finance before trading. Must consult your own investment adviser before making any trade.