There are times when I surprise myself with my predictions. Last week was one of them as I wrote about Nifty to face resistance around 16675. Though it would have been a better prediction had Nifty touched mid of my parallel channel but who am I to dictate how market should behave.
Now the following is my analysis for coming week based on what I am looking at (You may want to open image in new tab or save it for better view)
While last Wednesday saw a gap up opening and closing as a fat red candle, Friday was a gap down opening with closing as a green candle. This is too much to take and I expect market to remain range bound for the coming few days. Alternatively, Nifty may touch lower end of the parallel channel to take support. But I would be surprised if RSI breaks the support line.
Scenarios for the week ahead (highlighted as yellow box with black lines dissecting scenarios)…
|Scenario||Probability||Anticipated Price Action|
|Consolidation||High||Between 16650 and 16150|
|Downtrend||Medium||If breach below 16150; to drop somewhere till 15950|
|Uptrend||Low||If breach above 16650; to rise somewhere till 16875|
It is ironical that such big trending news on Afghanistan has no impact on global financial markets. I hope that stays the case for future as well. However, uncertainty on tapering by US is not cool. This will make market volatile until a clear direction emerges.
DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.