NIFTY

Nifty has had a horrid week and lost close to 4% (434 points). We had the US-China Trade News early this week before the market opened on Monday that caused a nose-dive in all Global Indices. There was barely an attempt at any sort of recovery after the gap-down on Monday. Nifty continued to move lower every single day, in process, breaking crucial support at the 11550 area.

With more promise of volatility in the coming weeks due to increased political action, courtesy the Indian General Elections, the next week will be nothing short of action.

 

Expectations for the Next Week:
Coming to the Chart Technicals, Nifty has had a series of continuous red days and has put in an Inside Day on the daily chart. There are two possibilities here, either we see a relief rally, or we see some consolidation before it starts moving lower again. With the global indices bouncing higher, during close on Friday, we may expect a small dead-cat bounce from this spot.
To conclude, this week, we might see some choppy action, but nevertheless, volatility is here to stay for now.

BANK NIFTY

Bank Nifty has had a slightly better week compared to Nifty, with losses close to 3%. Bank Nifty put in a spinning top doji on Thursday and indicated a possible reversal/dead cat bounce on Friday. With almost 1% gains on Friday, Bank nifty failed to hold and sold-off towards the end of the day and managed to close 0.5% higher.

Expectations for the Next Week:
Bank Nifty has no support till 28500. There might be a few green days, but with the kind of week it has put in, we should expect it to move lower in the coming week. 28500 remains the first stop for this move lower, with a deeper sell-off towards 27500 possible. Bank Nifty put in an extremely bearish candle and has closed much lower below support.
To conclude, this week, Bank Nifty is expected to move lower post a dead cat bounce/consolidation.

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