NIFTY-Weekly Outlook-Venkat's Blog

Sep 16, 2023

The past week saw a continuation of the positive sentiments except a struggle as it crossed the previous peak. As expected the Nifty posted a new ATH. The Index made a strongly bullish candle. on weekly chart which is a positive sign. The previous high would act as a support for some time.

A few observations from the weekly charts are:

• The index moved in a range of 357 points viz. between 19890 and 20222
  
• The oscillators of different time frames are showing positive signals
  
• Option open interest to drive the direction of the market
  
• 
  Expected scenarios for the ensuing week
  
• The Index broke the top of the descending channel on daily chart which helped the strong move. It made another break of ascending minor channel
  
• In the normal course when the prices reach the earlier trend there are possibilities of rejection. However, the Index has re-entered the earlier trend which is likely to set the probability of continuation of the uptrend higher as seen from the other indicators
  
• 
  
  Additional interesting observations
  
• The outlook appears to be positive with the break of crucial barrier zone of 19880 – 19960
  
• Index may find supports at 20140, 20030, 19960 and the index could face resistances at multiple levels 20330,20440, 20540
  
• There has been a few Gaps created in this bull run
  
• 18818-18908 (28th Jun 23) far off for now
  
• 18972-19079 (29th July 23) far off for now
  
• 19189-19246 (3rd July 23) far off for now
  
• 20063-20133- Newly created
  
• 
  
  Final Note
  
• The Index has stayed well above the long-term trend line and the 200 DMA at 18449 and 55 DMA around 19560
  
• In the weekly charts the Index has got get back to the original ascending channel after a struggle around 19850-880 which incidentally is the previous ATH
  
• The September series so far has proved to be positive with the Index recovering the entire losses made in August 23 and also posting a new ATH
  
• Expected to consolidate remain in the range of 19960-20440 and any close outside the range requires re-assessment of risk
  
• With continued momentum the Index has an opportunity to hit the Fib projection of 20535 in the near future. However, there are a few resistance zones around 20330-20440
  
• After three consecutive weeks of positive candles, It is prudent to remain vigilant as drag can be on both sides
  
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  #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.