The past week witnessed a narrow range, which suggests that the Index appears to be consolidating to retain the previous week’s gains. This can also be interpreted differently that the Index lacks the required momentum to cross 18K.
A few observations from the weekly charts are:
Weekly charts suggest that
Expected scenarios for the ensuing week
Index closed around the same level as that of previous week
The base seems to have shifted to 17520
For the ensuing week, the index may find supports at 17720, 17610, 17480 and the index could face resistances at 17920, 18080, 18170
Expected to remain in the range of 17520-18170 and any close outside the range requires re-assessment of risk
Additional interesting observations
Index seem to make intermediary base at 17500 levels and expect a pull back towards 18200
However, there would be series of hurdles at 17970, 18080
Final Note
The index seems to have weathered the storm due to panic selling of major corporate group stocks and the dust appears to be settling down
Interestingly the Index has managed cross-over (17650) of the previous long term trend line which it breached during the down move
From the daily charts it appears that the Index is moving in a downward sloping channel with base support at 17270 and top at 18040
Till either of this is breached we may see a consolidation
FIIs continue to be net sellers and the DIIs moderate buyers
The ensuing week has potential for making good the losses sustained in the last week of Jan 23 as we do not see major risk events scheduled for the week
Most likely scenario could be a range of 17670-18070
We need to see a daily close above 18100 for further gains towards 18300
The below piece of information is being highlighted in our previous blogs starting Dec 22. We intend to keep this tail piece even at the cost of repetition for the sake of quick reference
If we take the Fib retracements so far the correction has been 1283 points. The Annual gain has been 3704 points from 15183 to 18887. One third correction would fall at 17666 and a 50% correction would mean 17035
#Stay Safe
Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
A few observations from the weekly charts are:
Weekly charts suggest that
- The index moved in a range of 264 points viz. between 17652 and 18916
The oscillators are showing mixed signals
Option OI to drive the market direction
Expected scenarios for the ensuing week
Index closed around the same level as that of previous week
The base seems to have shifted to 17520
For the ensuing week, the index may find supports at 17720, 17610, 17480 and the index could face resistances at 17920, 18080, 18170
Expected to remain in the range of 17520-18170 and any close outside the range requires re-assessment of risk
Additional interesting observations
Index seem to make intermediary base at 17500 levels and expect a pull back towards 18200
However, there would be series of hurdles at 17970, 18080
Final Note
The index seems to have weathered the storm due to panic selling of major corporate group stocks and the dust appears to be settling down
Interestingly the Index has managed cross-over (17650) of the previous long term trend line which it breached during the down move
From the daily charts it appears that the Index is moving in a downward sloping channel with base support at 17270 and top at 18040
Till either of this is breached we may see a consolidation
FIIs continue to be net sellers and the DIIs moderate buyers
The ensuing week has potential for making good the losses sustained in the last week of Jan 23 as we do not see major risk events scheduled for the week
Most likely scenario could be a range of 17670-18070
We need to see a daily close above 18100 for further gains towards 18300
The below piece of information is being highlighted in our previous blogs starting Dec 22. We intend to keep this tail piece even at the cost of repetition for the sake of quick reference
If we take the Fib retracements so far the correction has been 1283 points. The Annual gain has been 3704 points from 15183 to 18887. One third correction would fall at 17666 and a 50% correction would mean 17035
#Stay Safe
Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.