Nifty's Weekly Outlook: Expected Movements and Key Factors Influencing the Market

My analysis suggests that Nifty is in a bullish trend, with market indicators pointing towards a potential upside or sideways movement this week. Given the current resistance levels, breaking through 15000-15100 might lead to a significant bullish run, potentially reaching to levels of 15400-15500.

Weekly Outlook of Nifty Future

To gain a clear picture of the weekly outlook, it's essential to consider the daily chart. In the previous week, Nifty experienced a sharp decline from 13780 to 13150, but managed to regain the support level. On Thursday, Nifty once again reached a life high at 13870. However, when looking at the Relative Strength Index (RSI), a negative divergence is forming. This divergence signifies that prices are making higher highs while the RSI is making lower highs, indicating a possible profit booking from higher levels.

Additionally, in the 15-min intraday chart, the same negative divergence is present, further supporting the view of potential profit booking. Given that this is a monthly expiry week, I expect Nifty to remain within a range of 13900-13700 this week. It is important to note that views expressed here are personal and for educational purposes. Before trading, it is advisable to consult a financial advisor.

Range Prediction for Nifty Futures

Nifty futures are expected to move towards a range of 13940-13990 as long as they hold above support levels around 13690. This positive bias could continue with the supportive market sentiment from global markets and upcoming corporate earnings. Major global markets closed positively on Friday, indicating a favorable opening for Monday.

Key Influencing Factors for the Market

This week, several factors may influence the market. HDFC's recent results and the release of numerous other corporate earnings will set the tone for the week. Moreover, the ongoing effects of the Covid-19 pandemic are also significant and will continue to impact market sentiment for the foreseeable future. The government is likely to announce stimulus measures for the MSME segment, which could create a positive environment.

Technical Implications

From a technical perspective, the market has been on an upward movement since April 6th, suggesting a need for a bit of rest. Hence, it's possible that Nifty may experience a negative day at some point in the next one to two days or by Wednesday. Monitoring these trends and indicators will be crucial in making informed decisions.

Disclaimer: Views expressed here are personal in nature and for educational purposes. Before trading and investing, please consult a financial advisor.