Broker Street Week Next: Nifty near the breakout as a resistance found at 25,100; PSU banks, energy lead regional velocity

After integrating for two weeks, the Nifty eventually appeared flexing its muscles for a potential move. In the last five sessions, the Nifty trades with a positive prejudice and ended near the high point of the week while also tried to advance the critical method of resistance. Last week the index saw oscillating in the 527-point range, which was consistent with the previous week. The instability also cooled down; On a weekly basis, India Wicks started from 9% to 14.63. When living in large range trading with positive bias, the headline index closed with a net weekly benefit of 252.35 points (+1.02%).

Over the past few weeks, the Nifty has traded in a well-defined range built between 24,500-25,100 levels. This would mean that the markets will be deprived of directional bias unless they will take 25,100 or 24,500 levels. Despite obviously strong undercurrents, it would be wise to be reactive to the markets rather than predict. Nevertheless, 25,100 levels are more likely to be the Nifty’s chances, until we should consider it resistance until it is sure.

The next week is set to see a steady start; Levels of 25150 and 25400 are likely to act as resistance points. Support comes at 24,800 and 24500. The trading range is expected to be wider than normal.

Weekly RSI is 60.94; It continues to remain neutral and does not show any variation against the price. Weekly MACD is booming and its signal is above line. A strong white candle emerged; Shows the boom in the markets during this week.

Pattern analysis of the weekly chart shows that the Nifty resisted the rising trendline, which starts at a low 21,350 start and joined the subsequent rising bottoms. The Nifty has tried to enter it after resisting it for a few weeks.

Overall, trading in markets may be seen in the next week with the boom. However, to end this good trending move, the index has to take 25,100-25,150 zones on the sidewalk. Until this happens, the markets can continue to integrate into the widespread trading range. Unless there is no strong move, this layer must be considered as an immediate resistance point until there is no strong move. Some pockets have gone very hard in the last few days; Someone should also focus on protecting the benefits at the current level instead of chasing the UP move. Fresh purchases in stocks with strong technical setups and the presence of relevant strength must be limited. A careful positive approach is advised for next week.

In our appearance on the Related Rotation Graph®, we compared different sectors against the CNX500 (Nifty 500 index), representing more than 95% of the free-float market cap of all listed shares.

Related Rotation Graph (RRG) shows that the Nifty PSU Bank Index continues to build its relevant pace while living within the leading quadrilateral. It can continue to move the markets relatively. Infrastructure, consumption and PSE index are also within the leading quadrant but their relative pace is left.

The Nifty Bank Index has turned within a weak quadrant. The Nifty Services Sector, Financial Services and Commodity Indies are also within a weak quadrant. Individual exhibitions of the components of these groups can be seen, but overall relative operations may slow down in the coming weeks.

The Nifty FMCG index has been turned within the Leging Quadrant. Nifty Metal and Pharma Indis are slipping in this quadrilateral. The Nifty IT index is also within the legging quadrant, but it is found in a strong bottoming-out process when improving its relative motion.

Nifty Energy, Media, Realty and Auto Toe Indicators are within the quadrant of correction and can continue to improve their related influence against widespread markets.

Important Note: Shows related to RRG ™ charts The strength and pace of a group of stocks. In the above chart, they show relevant performance against Nifty 500 index (extensive markets) And should not be used directly to buy or sell signals.

Milan is the founder of Vaishnav, CMT, MSTA, Consulting Technical Analyst and EquitySarch.sia and Chartwizard.AE and located in Vadodara. It can be reached at Milan.Shishnav@equityresearch.asia