Weekly Market Outlook for 17 Apr to 21 Apr

Weekly Market Outlook for 17 Apr  to 21 Apr
Weekly Market Outlook for 17 Apr to 21 Apr

by Ruchit Jain Last Updated: Apr 17, 2023 - 10:54 am 1k Views
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Markets rallied consistently in the truncated week gone by and Nifty ended the week well above 17800 with gains of around one and a half percent. The Nifty Realty Index outperformed during the week to post the highest gains amongst all sectors while all the indices (except IT and Media) ended in the green for the week..

 

Nifty Today:

 

Ever since the Nifty index gave a breakout above the crucial resistance of 17200, there’s been no looking back and the index has rallied consistently for nine trading sessions without breaking the previous day’s low. In this upmove, the index has also given a breakout from a falling trendline resistance and the momentum reading continues to hint at a positive trend. Another notable observation is the positive crossover of RSIS on the weekly chart for the first time in last four months which indicates a change in the medium term trend too. FII’s have finally started covering their short positions which is a positive sign from the short term perspective. Now post this rally, the hourly readings have reached the overbought zone and thus, there could either be a time-wise correction or some retracement in the coming week. But any such correction should be looked at as a buying opportunity and hence a ‘Buy on dip’ approach should be the trading strategy. The immediate supports for Nifty are placed around 17650 (support on hourly chart) followed by the ’20 DEMA’ around 17450. On the higher side, the immediate resistance is seen around the 17925-17970 range which is the PRZ (Potential Reversal Zone) of a harmonic pattern followed by the 61.8 percent retracement around 18110.

 

Short covering lifts market higher; ‘Buy on Dip’ strategy advisable 

 

Weekly Market Outlook 17 Apr to 21 Apr

 

Most of the sectors (except IT and Media) participated in this week’s upmove indicating a broad market participation. Hence, traders should look for stock specific buying opportunities on declines which could give good returns in the near term.

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17730

41800

Support 2

17660

41590

Resistance 1

17925

42500

Resistance 2

17970

42660

 

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About the Author

Ruchit Jain is Lead Research Analyst at 5paisa. He has a vast experience of 14 years in this field and is proficient in Technical and Derivatives Research. He has completed his CMT (U.S.A.) and has done Masters in the field of Finance at Mumbai University.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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