RSI (14 Days): 61.38
Support: 5215, 5148
Resistance: 5321, 5361
- On March 26 Nifty future (near month) closed with the premium of 10 points at 5,292.
- On the last day of the week, the Put-Call ratio reached at 0.87 times.
- Average Cost of Carry for the week increased to 7.14%.
- India VIX (Volatility Index) is at 18.03%, an increase of 6 basis points from previous week.
- FIIs turned out to be net buyer in the last 5 trading days.
Nifty is likely to correct
Nifty commenced the week on a subdued note on the back of rate hike by the Reserve Bank of India and weak global cues. However, it succeeded in holding the crucial 5,200 support level throughout the week and continued its upward journey after this short correction. The momentum on the upside was witnessed till the end of the week and Nifty managed to close around 5,280 mark. In the coming week, Nifty is expected to correct as it has already given a strong upward rally and its trading very close to its major resistance at 5,300 which is expected to restrict its further upward move. The technical indicators are also in the profit booking phase. The RSI and Stochastic have entered the overbought region suggesting a downward move and the MACD is showing maximum divergence and it is just about to give a sell signal by crossing below its signal line. It can correct either by consolidating or by moving downwards. Downside, 5,200 is the immediate major support and if this is breached, a fall until 5,100-5,050 can be expected. Upside, it can test 5,400 level incase it get support from its global counterparts and manages to breach 5,300 level decisively. Global Markets will remain the key deciding factor for the trend in our market.
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.
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.