Weekly Market Outlook - Mr. Rakesh Tarway, Head of Research - Reliance Securities

NIFTY scaled a new 52 week high at 8,982 levels, falling short of 9,000 as the options OI data continues to resist on the higher side despite sharp up move in index pivotal like TCS, Reliance and Bharti during the week. Index ended with a gain of 1.3% after oscillating in range of 173 points at 8,939 levels. Among the sectors Energy gained by 4.3% while other sectors like Metals, Realty, Banks and IT advanced to the tune of 1.5%-2% for the week. CNX Midcap and Small cap underperformed the broader markets as they posted gains of 1.2% and 0.8% respectively.

Nifty is just 2% away from its all time high it tested in March 15, but it has closed at all time high on the weekly candle. We continue to maintain our positive bias on the markets with intermediate resistances near the previous peak of 9,119 levels. The trend reversal point continues to be at 8,680 levels, violation of that level will face sharp profit booking in Mid Caps and Small Caps. The current month is pretty large in terms of derivatives expiry and being the first week there is no significant open interest data to validate a broader range.

NIFTY Bank has made a lower top on its weekly candle failing to cross the swing high of 21,042 levels it attained last week. We expect some profit booking if it fails to cross the high in the next week and RSI is also being at the higher end of the range confirming some profit booking from current levels. India VIX is being trading flat at sub 14 mark; a breakout above 16 could see some bout of volatility in markets as the March month expiry has 23 trading sessions. The news flow from the global markets in terms of FOMC meeting and election results from Uttar Pradesh will be to watch in the next month.

Source : Equity Bulls

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