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Nifty - Next Week Ahead - 11th Jan Week

Nifty50 closed the week at 14,347.3, up by 2.3%. As informed last week, it stays on around its resistance 14355 only. We are sure that you have noticed the reshuffling of sectors or the rotation of stocks among different sectors. the performance of the Midcap and smallcap index was remarkable during the week.

Technical Outlook for Next Week

Nifty50 index closed the week on a positive note as the market remained unaffected in the short term and continues to surge higher. This week almost all sectoral indices closed in green except FMCG while metals, IT, and media continued to lead.

Nifty now seems to be heading towards 14,500 as it is lacking any significant negative events. On the downside, 13,980-14000 has been established as immediate support and a break of the same may trigger a profit-booking move in the short term.

The market continues to remain overbought in the short-term and we maintain a cautiously bullish outlook unless the market breaks below 13,950.

Expectations for the next week

Everyone knows that quarterly earnings from India Inc. are started, and starting is with major IT players. Whilst a good show is expected from a majority of sectors, market participants should be wary as stock prices have run-up to a great extent and most of the positives have already been discounted in the price.

From above an hour chart of Nifty, you are confident that it is self-explanatory that profit bookings already started and experienced trades, knows very well that time to time book profit and keep strict stop loss would be the strategy for coming weeks.

A decent strategy for traders would be to wait and watch for the market's reaction to the results and then see the momentum to judge the trade.

Investors are suggested to stay put and look for opportunities to increase weightage in quality players from the metals and mining, industrials, cement, and real estate sectors.

Happy investing, keep trading

Neeraj Bhatia

Managing Director (technical Analyst)

CRBS Private Limited

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