Markets Take A Day Of Rest; Ends Week With Minor Losses
Market Outlook 20 Mar 2017
Markets Take A Day Of Rest; Ends Week With Minor Losses; Nifty, Bank Nifty Undergoes Minor Correction; Overall Trend Remains Up With A Period Of Consolidation Likely.
NIFTY: After two gap ups in last four trading days, it is normal for the index to retrace some of the gains in trade. Technically 9220‐9250 mark is short term hurdle for the index as clearly visible in the above chart and market breadth for past some sessions is not inspiring, with declines exceeding advances in last three out of four occasions but we should always remember that this is a bull market; therefore we are not considering going short in this market . Going ahead this 9220 to 9250 level can prove to be a minor resistance for the Nifty and once Nifty sustains above these levels; we may again witness an upside surge. Bank Nifty is already in a consolidation phase since Tuesday and we can expect some consolidation in Nifty also with the boundaries 9100 and 9250. Swing traders should wait for the next trading opportunity whereas intraday traders can look for a buying opportunity on dips and consolidations.
BANK NIFTY: Bank Nifty had a downward day in the markets; prices started the session with a gap up of 40 points above 21300. Index made a high near 21335 but found resistance there and came lower below 21150. In the end, it closed near the lows at 21175 with a loss of 90 points. On the daily charts, prices are in a narrow range from last four days. Index is finding resistance near 21300‐21350 from last two occasions and coming down. Bank Nifty is consolidating with the boundaries 21000‐21300. Trend is up, so we may again see a move above 21300 very soon and that would be a buying opportunity for swing traders. However, as far as prices are trading inside this narrow range, traders should look to avoid carrying positions and trade on intraday basis only on the long side on dips and consolidation patterns. Swing traders should wait for the close above 21300 for a buying opportunity.
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