At last Nifty 50 took support near its key levels, which was visible as resistance on the charts.
The nifty 50 Index finally started moving upward and it ended the weak on a decently positive note.
The previous three weeks had seen the index taking support at its 20-Week Moving Average; and finally, following the moves that it has seen over the past weeks, the NIFTY is now above all the critical moving averages.
Nifty 50 - Monthly Chart
The Nifty 50 Index Monthly Chart is trading at the mature level and trying to close above the previous month's closing. Let us see, how it maintains itself before 27th October.
Nifty 50 - Weekly Chart
As we know that the Nifty 50 Index is trading above all moving averages, we can see in the Daily as well as Weekly Chart, Nifty is trading in a Festive mood and it seems due to the short trading week ahead, Nifty 50 could be extremely volatile. It can go to either side violently because the volume would be very less on Tuesday and it is easy for operators to move the market on either side.
Nifty 50 - Daily Chart
The Nifty 50 Daily chart is also telling the same story and Nifty is in a festive mood and trading above all moving averages.
In this chart, we are only looking for the previous week's activity by Foreign Institutes. We can observe that after 11th October 2022, FIIs have minimized their selling activities in Equities and DIIs are trying to match or overbuy their number.
Outlook for Coming Week ending on 27th October-22
It is a Monthly expiry on 27th October 2022.
From a technical point, the NIFTY 50 Index is now trading above all the key moving averages. However, it is yet to give a clean breakout on the weekly charts. If this happens, we may well be heading towards 18000-levels again.
If Bulls want to take the control of the market, they have 16950 as a major level to defend on a closing basis to avoid any major weakness.
The resistance level for the coming week is likely to see 17650 and 17930
The supports Level comes in at 17300 and 17210 levels.
Definitely, there may be a good amount of volatility to deal with during the week, because of the short trading week.
Have an eye to hold the Nifty 50 Index above the 16980-17100 zone to avoid any weakness from creeping in.
Thanks for reading