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Nifty - In Broad Range between 17900-18600

Nifty Weekly chart

This week, it seems it is important to see the Weekly chart of Nifty, instead of the daily chart. The reason is very simple. It shows us more clarity to take the trades in the coming week.

At present Nifty is in the broad consildation range i.e. 17900 on the low side and 18600 on the upside.

Nifty Daily Chart

Nifty daily chart indicating that it is near 17900, which is strong support after 18050.

Last week we discussed the importance of 18050.

Now for this week, if it sustains above 18050, we will go for long at least for 200-250 points. the maximum it can again try to catch 18600 maximum, the possibility seems a little low to reach that point and not sure about sustainability.

If sustains below 18035, we will go for bearish trade and can see 17900, as expected last week.

India VIX

Interestingly, Nifty showed a trend to going down in whole last week, where India Vix shot up (11.7% approx), which means still fear is there. Confidence to buy index on these levels shattered. Commuters still looking for short.

The final thought is: Nifty will be in a broad consolidation range of 17900 to 18600. If it breaks its range, we should make the decision as applicable.

Due to corporate results, some stocks can move further up or down. But we can not see a big movement from here at least for this week.

FIIs have already taken their bearish position for this monthly expiry. We should watch the Options data regularly to see if there is any change in their thought process.

We recommend avoiding excessive leveraged exposures and continue approaching the markets in a highly stock-specific way while vigilantly protecting profits at higher levels.

Thanks for Reading

Happy Trading

Keep Investing


Neeraj Bhatia

Managing Director

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