By Staff Reporter: Last week correction & losses extended mainly because of the news of earlier than expected Fed tapering plans that means chances of Federal Reserve pulling back its stimulus – Dollar strength 9 month high, China’s regulatory crackdown - fall in steel, copper and Crude prices globally & current rising concern of Geo-Political Crisis because of Afghanistan’s situation & besides that on going concern of Fast-spreading Delta virus. Though major U.S. stock averages rebounded Friday but closed the week in red, here that weak global cues pushed Nifty from 16700 to 16376 in last 2 trading sessions of 4 days truncated week.
Weekly basis Nifty fell 78 points formed a small bearish candle on the weekly scale after 2 weeks strong bullish journey from 15850 to 16550 almost 700 points rally.
Nifty weekly settled at 16450. Day to day basis 118 points negative closing.
Last day after Gap down opening below 16400 Nifty gave a huge volatility through out the day as a roller coaster move within a narrow range of 100 points mainly in between 16400 to 16500.
In the coming week we may expect a consolidation phase mainly in between on the down side 16250 to 16150 range & on the upside 16600 to 16700 range with volatility as coming week is the monthly expiry of F&O contracts and apart from that, also the market will keep a close watch on global cues (including world indices) and COVID-19 situation. Traders will also focus on Jackson Hole Economic Symposium which is scheduled to be held for two days - August 26-28.
For coming week Initially Bulls are safe as long as Nifty holds above 16396-368 but for further initial bullish move for primary basis not only should cross 16510 but also secondary basis should stay above crucial level 16550.
On the up side :-
16550-580 is the resistance zone - whipsaw area. Fresh Bullish move need to stay above 16580 for move back towards 16640/666 – 16702. Above 16700 + uncharted - open sky – price projection difficult. But extended hurdles are at 16777 -16830.
On the Down side :-
16360-330 is the support zone -- whipsaw area. Fresh Bearish move will get active below 16330 for a move back to 16280-16240 <5 wema> & then short term basis major 16170 <20 dma>.
In case more bearish action then below 16170/160 Nifty may correct upto 16050 <9 wema >. 13 wema 15900 is a very crucial Support on the down side. Last life line support of this uptrend is 15500 <21 wema >
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