This past week, the Nifty showed signs of a positive turnaround after a series of bearish candles. The Bank Nifty also ended on a positive note. However, caution is advised as the market needs to decisively break out of the 19500 level for the pullback to be effective. Looking ahead, we anticipate a trading range of 18900-19700 for the coming week.
Despite a subdued start, the Nifty displayed range-bound oscillations before a decent pullback on the last session of the week, resulting in a bullish candle. This rise will only be meaningful if it manages to penetrate immediate resistance around the 19500 mark. While a midterm trend suggests further retracement, we remain cautiously optimistic.
It’s important to note that breaking down the immediate support at 19200 could trigger the next round of retracement towards the 18900 level. Therefore, it is highly recommended to exercise caution when the market hovers between 19500-19700.
Chart Patterns and Analysis
An analysis of the daily chart reveals that the Nifty closed 0.94% higher at 19435.30. After opening on a flat note, it experienced a sharp upward movement, culminating in a positive finish. However, for the pullback to be sustained, the Benchmark Index must rise above the critical resistance at 19500.
When examining the broader chart pattern, it becomes apparent that the Nifty is likely to experience further retracement towards the 18900 level in the days to come. Multiple time frames indicate a range-bound oscillation with a negative bias, reinforcing the need for caution during market upticks.
As we navigate the market, it’s important to remain cautiously optimistic. While the Nifty has shown resilience and ended the week in the green, the need to decisively break through the 19500 resistance level looms large. The broader chart pattern suggests the possibility of further retracement, making it essential for investors to exercise caution during market rises. By staying informed and aware, we can make better decisions and navigate the market with confidence.