Weekly Market Recap

We saw another volatile week with bears and bulls showing equal prowess to dominate the street, consequently nothing much has happened with the benchmark indices Nifty and Sensex, although Banknifty outperform the major indices.

The BSE Sensex ended the week with a gain of 67 points or .19 per cent to settled at 35689, and NSE Nifty ended flat this week with a gain of only 4 points or .04 per cent to close at 10821, however, Banknifty gained 349 points or 1.32 per cent.

Current Outlook

This week Nifty has turned back from rising trend line drawn from the march low, as it can be seen in chart below (click on chart to expand), but it stays below horizontal resistance drawn from may high. However, there is still the mechanism of ongoing accumulation and distribution which I wrote about last week. The range is becoming narrow along with indicators like RSI and OBV showing almost flat formation and the implication of this narrow range will eventually turn out to be big movement on either side, as of now it is difficult to say whether the ongoing process is accumulation or distribution.

 Moreover, even there was a big upside move on Friday on Nifty, but again the difference of advance and decline was negative (821-937= -116). However, consumer stocks appears to have taken a good support in a recent pullback post big up move and that’s to me is nice entry.

Hence, for indices, this set up is mutable, as it stands right now, we should wait for veritable evidence before we take a clue about next big move on Nifty.

Conclusion

Not really anything to add to what I said above. However, event like breakout or breakdown on Nifty after getting out of narrow range could be steep and fast. Therefore, some caution is warranted given the current setup.

I welcome any feedback you may have about the content of this article.

Be Alert..!!;  Be a Savvy Investor..!!

Pankaj