Correction is expected

 

NIFTY WEEKLY CHART

NIFTY DAILY CHART

The Indian market registered decent gains this week amid high volatility. Nifty belled the week on a strong note as buying was seen on expectation of strong IIP numbers. Thereafter Nifty witnessed some volatility and managed to close near 5000 mark. From here, It seems that the bulls may not be able to carry forward the momentum as the range of 5,040-5,080 is a strong resistance for Nifty and there could be profit booking once Nifty comes near to this level. As technical indicators is concerned, MACD is crossing its signal line from the above, showing a bearish trend and RSI is also moving in overbought region. F&O data are also supporting this view. We saw significant OI (Open Interest) accretion in Puts ranging from 4,800 to 4,600 during the week, such large accretion in put is indicating that profit booking will occur in near term and a wide correction is due in the range of 4-6% in forthcoming trading sessions. Downside, the level of 4,850 will play as a support for immediate term. A fall below that could drag Nifty to near 4,600. Buying could be seen in Metal and Reality and FMCG stocks while selling might witnessed in IT & Auto stocks.
 
Thanks and Regards


S&P Wealth Creators

Call 09831497250 or mail us @ S&P Wealth Creators with your Name and Mobile No. for subscription offer of intraday calls during Market hours.

Disclaimer
The calls given here are My Personal views, trading or investing in stocks is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. S&P Wealth Creators will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information.
Investors should be cautious about any and all stock recommendations and should consider the source of any advice on stock selection. Various factors, including personal or corporate ownership, may influence or factor into an expert’s stock analysis or opinion.