In the previous week, the Nifty -50 Index struggled to keep itself above 17404, which was its 200 Daily moving average, and at last, on Friday, it has broken up and ended up with a handsome gain of 125.55 points in the week. the range of the headline index declined from 582.55 points to 389.55 points as of last week.
Let us discuss the insights of chart patterns on different time frames:
Nifty 50 Index Monthly Chart
The Nifty 50 Index Monthly Chart is showing that it retains its head up from the level of 17255.20 so it saved itself to drift down further, which is a good sign, but it is not enough to give it a green signal or go ahead that the headline index will continue this rally. But yes, it seems that for the time being, the monthly index found its lower-level support, because all the Moving Averages are supporting it at this time.
Nifty 50 Index - Weekly Chart
The Nifty 50 Index Weekly Chart candles got a good rejection from their lower level and kept its head up. Previous week volumes are super bullish, which indicates the rally could continue till 17800, and if there will be no odds added by FED NEWS, this week, then, it can try to go up to 18000 in near future.
Nifty 50 Index Daily Chart
The Nifty 50 Index Daily Chart has got full support for all daily moving averages and the daily candle crossed it with a strong Green, which can most probably follow up with the same green candle again this week.
Outlook for Coming Week starts from 6th March -2023
This week global trade setup seems strong;
Support Level for the Coming Week for NIFTY: We can see the support coming from the level of 17473 and it breaks decisively, then 17421 followed by 17338 could be the next support for the week.
Resistance Level for the Coming Week for NIFTY: We can see the resistance level could be 17639. and If it will be broken up, then we can see the level of 17690, and breaking that level can show us the level of 17773.
As previous week Nifty Bank surged approximately 862 or 2.13%, which is the highest closing level since 16th Feb 2023. Nifty Bank also formed a long Bullish Candlestick pattern on the Daily Chart, with above average volumes, which forced me to give the technical support and resistance level of Nifty Bank also.
Support Level for the Coming Week for NIFTY BANK: We can see the support coming from the level of 40783 and it breaks decisively, then 40597 followed by 40298 could be the next support for the week.
Resistance Level for the Coming Week for NIFTY BANK: We can see the key resistance level could be 41382. and If it will be broken up, then we can see the level of 41567, and breaking up again that level can show us the level of 41867.
In the coming week, Tuesday will be a trading holiday on account of Holi.
INDIA VIX: The last week it came down from the level of 14.13 level to 12.18.
INDIAVIX is again at one of its lowest levels seen in the recent past.
This is something that warrants caution again.
While we approach the markets, one eye will have to be on the volatility as such low levels of volatility depict the complacency of the market participants and often ends up giving a rude shock to the indices.
Any spike in the VIX will adversely impact the markets in general. Even if there is no major decline, it is capable of injecting markets with some spikes in the near term.
Thanks for reading.
Neeraj Bhatia (Managing Director)
Disclaimer: I am not a SEBI Registered technical Analyst, so consult your financial advisor, before taking any trade. This technical post is only for learning purposes.