The market witnessed one of the action packed week with major events of Budget, FED rate decision coupled with cross boarder triggered negative sentiments relating to governance issues in one of the major conglomerate. The budget day saw extended volatility and the highs and lows of the week as well. The final session brought some hopes on the possible recovery path.
A few observations from the weekly charts are:
Weekly charts suggest that
Expected scenarios for the ensuing week
A close at 17854 is seen as positive signal
For the ensuing week, the index may find supports at 17720, 17610, 17470 and the index could face resistances at 17920, 18050, 18140
Expected to remain in the range of 17470-18140 and any close outside the range requires re-assessment of risk
Additional interesting observations
Index seem to make intermediary base at 17400 levels and expect a pull back towards 18200
Final Note
Panic selling of one of the major corporate group stocks slows down
The index seems to have weathered the storm and the dust appears to be settling down which is evident from the final closing at higher levels
Index took 17660 as Pivot and moved around 300 points on either side
The Index is moving in a downward sloping channel with base support at 17270 and top at 18070
Interestingly the Index has managed cross-over of the previous long term trend line which it breached during the down move
Till either of this is breached we may see a consolidation
The ensuing week has potential for making good the losses sustained in the last week of Jan 23
We need to see a daily close above 18100 for further gains towards 18300
With not many major risk events scheduled in the near future the market expected to have positive outlook
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 around 619 points viz. between 17353 and 18972
The oscillators are showing mixed signals
Option OI to drive the market direction
Expected scenarios for the ensuing week
A close at 17854 is seen as positive signal
For the ensuing week, the index may find supports at 17720, 17610, 17470 and the index could face resistances at 17920, 18050, 18140
Expected to remain in the range of 17470-18140 and any close outside the range requires re-assessment of risk
Additional interesting observations
Index seem to make intermediary base at 17400 levels and expect a pull back towards 18200
Final Note
Panic selling of one of the major corporate group stocks slows down
The index seems to have weathered the storm and the dust appears to be settling down which is evident from the final closing at higher levels
Index took 17660 as Pivot and moved around 300 points on either side
The Index is moving in a downward sloping channel with base support at 17270 and top at 18070
Interestingly the Index has managed cross-over of the previous long term trend line which it breached during the down move
Till either of this is breached we may see a consolidation
The ensuing week has potential for making good the losses sustained in the last week of Jan 23
We need to see a daily close above 18100 for further gains towards 18300
With not many major risk events scheduled in the near future the market expected to have positive outlook
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.