Nifty Trend Is Sell On Rise

In the last week, we were expecting a bounce from the support of 16900 but bears have proved us wrong. I do not think the reason was a bear market the main reason was American market volatility and FED policy. Also, RBI surprisingly took a press conference and increased the repo rate by 0.40%. Because of this back to back events, our market has broken important support and closed below on the weekend.

Nifty: On a daily time frame NIFTY has broken important support of 16900-16800 and closed below this Wednesday. Bears have taken handover and they have shown we are the leader now. On weekly expiry, the market has shown short-covering and retest the resistance of 16900 then closed at day low. Friday’s closing is neutral i.e. Star Doji and the market took a rest in between support & resistance.

Coming week's view for the market is sell on rise and we are expecting levels of 16100-15900. On basis of moving averages trend is down, and the market will fill the gap down levels. The supply zone is around 16600-16700 and the demand zone is 15800-15700.

On weekly frame market trading in lower-low lower-high trend. The market has closed near important support, we can expect some pullback or trend reversal. We just need closing above 16100 on weekly basis. Let’s hope for the best and prepare for the worst.

Banknifty: After the made top of 38800-38900 BANKNIFTY has gone into correction mode. However, in the correction mode, most of the candles are neutral. That means banknifty is looking strong than the nifty. It just opened the gap down and closed at the opening price i.e. Star Doji.

On weekly frame banknifty trading in a Bearish Descending Triangle and right now closed near important support. We are expecting a bounce from these levels but need a breakout to trend line resistance for more up moves. The strong demand zone for banknifty is 34500-34300 and the supply zone is 35000 for the coming week.

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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.