A good fight was visible clearly between bulls and bears last week. The whole week was bearish, except Friday after 3 p.m. sudden short-covering move save the Nifty long-term bullish pattern intact.
The Nifty was unable to take out the level of 15800-15900 in short term. A slip below 15400 will definitely bring a short-term bearish phase.
India VIX is still a concern. It slipped further 9.56% on weekly basis resting at 12.09. This shows capped upside versus more downside.
Too much low PCR data suggested that there could be a bull run, which can again support up to 15800, but if PCR reaches 1.6 at this level, it will bring again a bearish phase.
Next week 16000 again remains a psychological level resistance, but to reach level Nifty should cross-level of 15850-15915 with good volume.
Nifty this week range would be 15400 to 15900, which is only 500 points.
The chart of Nifty Bank is also squeezed and ready to give a breakup or breakdown. So the move could be, either way, keep an eye on it.
USDINR is crossing 74.5 level is absolutely negative for Nifty. It indicates heavy selling by FIIs. Even DIIs are trying to support the market by buying a good amount of stocks, but even then FIIs selling ratio is unmanageable.
We still recommend not to go for long positions. New purchases should be limits to defensive sectors. Protect your profit by selling on higher levels.
Thanks for reading
Happy Trading
Keep Investing
Regards,
Neeraj Bhatia
Managing Director
https://www.crbpvl.com/
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