Weekly Market Recap

This week market started off in red on Monday, soon after buyer emerged and closed the session in green, and the buying continued till end of the week, except one day fall on Thursday that too perhaps on the back of weekly expiry. In the week gone by the benchmark SENSEX closed up by 403 points, or 1.09% at 37384, and NIFTY gained 129 points, or 1.18% to close at 11075.

Current Outlook

In this highly dynamic environment the short term and intermediate picture are changing quite frequently. Unlike last week, as I wrote the over all picture had been deteriorating amid high volatility, this week things seems to have improved, if not drastically. Although, the NIFTY is still under last one month trading range, however, if we look at the nuances of technicality with tranquillity we would found that the configuration appears to have improved not significantly, but to some extent. Resilience and positivity, despite, having so much bad news in economy is a good sign. However, I believe there are particular sector or stocks which will outperform the market, I don’t expect much from indices.

Moreover, NIFTY may face stiff overhead resistance between 11150 – 11200 (200 DMA) as depicted in chart below, but given this week price action it is apposite to note that this short-term positivity may continue for at least few days to weeks. One more solid possibility is, perhaps sellers or smart money has gone under surface for time being and may come out aggressively at higher level and we need to be prepared for that. Hence, I can say at least short term outlook is looking positive.

Conclusion

The market is looking positive in short-term time frame with the probability to extend into intermediate-term, however, indices are closed to overhead resistance, so we should be cautiously optimistic. My guess is that seller will re-surface themselves aggressively it higher, but it is difficult to predict the level as NIFTY may go up to its previous peak i.e. above 12000. Hence we can be a buyer, but with strict selling discipline.

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

Keep Exploring..!; Be a Savvy Investor..!!

Pankaj