Weekly Indian Stock Market Outlook: FairWealth Securities

Weekly Indian Stock Market Outlook: FairWealth SecuritiesNifty on account of stable government ahead opened gap up and hit 15% upper circuit in first 5 min of trade & after hitting the next 20% filter markets remained shut for the remaining part of the day and finally closed at 4308.

In coming days Nifty may trade rangebound and may again see consolidation at above 3834 levels before continuing its upward journey. On daily closing RSI has reached a value of 80 which is a high extreme value of RSI.

Fresh buying positions at these extreme reactionary levels is not recommended & one should wait for dips to take new buying positions. Near term support level for Nifty is at 4200-4000 & then 3834.

A look at the monthly charts shows that Nifty is likely to reach 4450 & then 4650 and may face stiff resistance at those levels.

One should not buy in such euphoric markets & wait for dips in the stocks as stocks have created many upside gaps and buy only when these gaps are fully or may be partially filled up.Nifty had a key resistance at 3834 & this resistance will now act as a strong support for the markets in intermediate term.

Technical Analysis by Sovid Gupta and Hunny Tarika (hunny.tarika@fairwealth.in), FAIRWEALTH SECURITIES PVT. LTD. Please check  FairWealth Securities for more information.