Weekly Market Outlook for 4th March to 8th March

Weekly Market Outlook for 4th March to 8th March
Weekly Market Outlook for 4th March to 8th March

by Ruchit Jain Last Updated: Mar 04, 2024 - 11:06 am 506 Views
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In the week gone by, Nifty traded with higher volatility as the index corrected during mid-week upto 21860, but it then witnessed a smart recovery to register new record high and the index ended the week just below 22400 with weekly gains of three-fourth of a percent.

Nifty Today:

Since the mid of January month, Nifty was consolidating within a range which seemed to be a time-wise corrective phase. In the intermediate declines during this consolidation phase, Nifty managed to form a support base around its 40 DEMA which is usually seen as a crucial average in an uptrend. The higher than expected GDP data on Thursday evening led to a resumption of the positive trend and the index surpassed the previous highs.

Thus, our markets have resumed the trend post a consolidation and thus traders should continue to trade in the direction of the trend. The immediate supports for Nifty are placed around 22200 and 22000 while positional support of 40 DEMA is now around 21800. Positional traders should ride this trend with a stop loss below 21800 and look to trail the stop loss higher with upmove in the average. On the higher side, the retracements of the recent correction indicate possible near term targets of Rs. 22490 followed by 22720.

                                          GDP Data boosts market sentiments, index resumes uptrend 

The Nifty Midcap 500 index which resembles the broader market movement, has also managed to form a support around its 40 DEMA and has resumed the uptrend. Amongst other sectoral indices, the Metal index has shown signs of relative outperformance which could continue in the near term.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

  Nifty Levels Bank Nifty Levels FINNIFTY Levels
Support 1 22220 46800 20670
Support 2 22080 46500 20570
Resistance 1 22500 47730 21000
Resistance 2 22650 48000 21250

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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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