Last week Nifty broke its trend line and traveled its lowest 14350 after touched 15051. Still Nifty is in the bull run because it has regained its 14500 and also it did not break 14000.
This week every analyst is giving a bearish tone for the coming week.
In my view, Nifty is still in the broad consolidation range. Well, we can say that no good news is bad news for the coming week.
Two major points are considerable
US Bond yields rates are increasing
Return of Covid19, as the second phase
I can say that point number -1 regarding US bond is really a piece of negative news than why FIIs are buying Indian equity in each deep fall of market? In the last two days before this weekend, their purchased numbers cross approximately 2500K.
Point number -2 is a little bit of deep concern, but all governments are taking precautionary measures.
No doubt Nifty has broken important support levels in the technical chart, but hope of recovery is intact till support of 14000 is safe.
In my view, incoming week, Nifty will be in Range bound to slightly negative.
A technical pullback can not be ruled out, but it will not a bull supported, but it could be a short-covering rally.
The weekly range of Nifty could be between 14500 to 14900. The level to watch would be 14780 and 14900 for either side break up or break down.
Bank Nifty is slightly more negative and its weekly range could be 33300 to 35000. Both levels need to watch to take your trading decisions.
Do not leave your put options unattended and book profits timely.
No doubt upside seems limited but the downside is also limited.
Bull market corrections are very sharp and furious.
And remember we are still in the bull market.
Thanks for reading,