Friends, we have seen a 200 DMA breakdown in February 2022. The index has normally given moment of 2-3% in a day that is up or down because of the World War III fear. Nifty has touched 15700 and taken a sharp U-turn and given back-to-back breakout to its 20, 50, & 200 DMA. From the low of 15700 Nifty showed highs of 18000 within the month, its almost 2000 points move. However, in the last month market is reacting to global market moves which is the reason we have seen volatility in our market. We are not able to predict the market direction and get punishment by hitting stop-loss.
In that last week of monthly expiry, Nifty played in a very small range, and on the first day of the May series it has fallen from day high. The overall week was volatile and as on the monthly chart, we get neutral closing. Coming week again we are expecting volatile because as per the chart there are supports and resistances range are very narrow. If we look at the options data then call writing has happened and no put writers are there. So we are expecting a fall on Monday and then a bounce from the bottom levels. For the coming week, support is around 16950-16900 and resistance is around 17350-17400. We are neutral on Nifty for the coming week but the strategy is to buy near support and sell near resistance with confirmation.
If we talk about Banknifty then the scenario is the same. However, banknifty is trading below all DMA so there is much resistance for banknifty. Also, HDFC Bank & HDFC are very oversold so we are expecting a good bounce in this pair and private banks. If we will be right then banknifty will cross all resistance and will again show levels of 40000. Right now we are bearish on banknifty for this week as per chart & options data. Support is around 35500-35400 and resistance is 36800-37000.
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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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