Sensex ended with a net loss of 1.10% whereas Nifty lost 1.25% w-o-w.
Pattern Formation: On the weekly chart, we are observing a spinning top candlestick pattern which suggests that prior up trend is losing breath. On the daily chart, we are observing that prices have come closer to the demand zone of 10251 to 10112. Further, we are observing three narrow range body formations which suggest indecisiveness prevailing at current level.
Outlook: The current price action both on weekly as well as on the daily chart suggests that markets are cautious at current level. In coming week if Nifty trades and close above 10371 levels then it is likely to test 10440 – 10509 – 10590 levels. However, if Nifty trades and close below 10271 level then it can test 10202 – 10133 – 10053 levels.
Broadly, for current week we are of the opinion that the demand zone 10251 to 10112 holds significance going forward. Any breach of the mentioned demand zone would intensify the selling pressure. However, if Nifty holds the above mentioned demand zone there is high probability that Nifty may test 10400 - 10500 levels in couple of weeks.
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