Sensex ended with a net gain of 1.70% whereas Nifty gained 1.95% w-o-w.
Pattern Formation: On the weekly chart, we are observing that prices have traded and closed above the previous week high (9960.50) which suggest that the weekly bias has turned positive. Further, the momentum Oscillator viz. RSI is gaining momentum. On the daily chart, we are observing a bull candle which suggests that momentum on the upside is likely to continue.
Outlook: Combining the above two pattern formations it is evident that momentum on the upside is likely to continue. In coming week if Nifty trades and close above 10015 levels then it is likely to test 10061 – 10107 – 10161 levels. However, if Nifty trades and close below 9943 level then it can test 9897 – 9851 – 9797 levels.
Broadly, we are of the opinion that for current week 9780 remains a make or break level. Hence, as long as Nifty holds the mentioned level, we are likely to witness upside momentum. In such scenario there is high probability that Nifty may test 10100 – 10200 levels in couple of weeks.
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