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• The market index began the week with considerable volatility, but after attracting some buying interest near the 10-day moving average, there was a significant technical rebound in the price action.
• It displayed a strong trend with four consecutive higher high candles, climbing 628 points from Monday’s low.
• On the weekly chart, despite pulling back from the upper Bollinger band, the price action encountered strong and immediate resistance at the channel.
• The week concluded with major sectors confirming an upward trend, showing positive and improving momentum.
• As for market breadth, the number of stocks trading above their 10-day moving average has fallen below the 50% mark, while those trading above the 20-day, 50-day, and 200 DMA averages continue to hold above the 50% level.
• Therefore, while the overall trend is positive, it will be critical to see a recovery in the intermediate trend of the stocks; otherwise, it could lead to a more pronounced weakness.
• The momentum breadth has remained positive since the union election, but a declining trend in market breadth volume indicates selective accumulation.
• The weekly RSI stands above 72 levels and remains mildly overbought.
• The index has surged significantly and is currently trading well above its mean. As a result, we expect the markets to pull back from current levels.
• However, this should maintain the primary uptrend, providing an opportunity to capitalize on the bullish strength during the dips.
• Technically, the support levels near 23650 and 23300 will be the key levels to watch. Sustenance above these supports will allow the index to gain bullish strength.

• The 50 index started the shortened trading week with a 114-point gap-up opening, but the index remained mostly unchanged throughout the week.
• Daily trading sessions showed narrow ranges, with little intraday trend.
• While most broader and sectorial indices continued in an upward trend, many of them started to lose their positive momentum, signaling a need for caution.
• The number of stocks trading above their 10 and 20-day moving averages has entered the overbought zone, those above their 50-day moving averages are now above the 50% bullish threshold, and the stocks trading above their 200-day moving averages are above the 75% threshold.
• This suggests a higher likelihood of profit booking in stocks with an extended intermediate trend.
• Momentum breadth has been positive over the last 2 weeks, indicating moderate but specific accumulation.
• The weekly RSI shows bearish divergence against the price as it is not marking fresh high along with price.
• In terms of price action, weak candles were observed during the week, showing signs of exhaustion
• While the index is trading 1.9% above the mean, Nifty faces strong overhead resistance at 23650-23600. Therefore, any upward movements should be used to protect profits at higher levels. On the contrary, the zone of 23250-23000 is anticipated to act as support.

• The week that went by was in stark contrast to its penultimate week as the 50 index remained in an extremely narrow range. In the week before, the markets reacted with high volatility swaying 2057 points.
• On four out of the five trading sessions in the week gone by, the index came off by over 100 points from its day’s high.
• The VIX index also cooled off by another 24% to 12.82.
• While the price action closed near to record highs, it currently trades at a distance of 2.5% above the mean.
• On the market breadth front, the populace of stocks trading above their 10 and 20 daily MA have entered the overbought territory. While those above 50 and 200 daily MA remain in the bullish zone above their 50% threshold.
• The momentum market breadth remained positive with above average breadth volume citing modest accumulation.
• The weekly RSI continued to show bearish divergence failing to mark fresh highs unlike the price action.
• The Nifty 50, Midcap, and Smallcap indices are anticipated to be trading at stretched levels with positive sloping moving averages, culminating in a further sideways trend that will allow to  garner bullish strength in the intermediate term.
• The overall bias remains positive. A sideway to mildly profit taking bouts will be an opportunity to buy the dip.
• With a truncated week ahead, the markets would adjust to global trade setup on Tuesday. The zone  of 23550-23650 is anticipated to act as immediate resistance zone while the support comes in near 23150-23000. A breach below 22850 would warrant a caution.    

• The markets had an incredible eventful week as they reacted to exit polls and the general election results. Nifty50 gapped higher on Monday cheering the exit polls and scaled to fresh life-highs. It closed the first trading session of the week with a hanging man candle pattern and it succumbed to high volatility and severe selling pressure due to the announcement of election result. A remarkable recovery also followed bolstering a weekly closing with 759 points (3.4%) in green allowing the index to reclaim the ascending channel resistance once again. With this the price action now trades at a distance of nearly 3% away from the mean.
• This also led to the formation of a weekly long legged hanging man candle and their occurrence near the high point have the potential to halt the ongoing uptrend.
• The VIX came off 31.4% on a weekly basis.
• The RSI on weekly timeframe confirmed a bearish divergence after failing to scale to new highs contrary to the price action.
• While most sector’s uptrend remain under pressure, on the market breadth front, stocks trading above 10 daily MA surged into the overbought territory while those over their 20 and 50 daily MA have crossed above their 50% threshold. This also implicates early sign of mild profit-booking. The populace of stocks above their 200 daily MA are well above 65% threshold which is a positive sign. The momentum market breadth remained positive for majority of the week. The market breadth volume saw sharp rise on the exit poll shakeout and continued to remain volatile.
• In anticipation of the index to trend sideways, the zone of 22620-22470 holds a very crucial support zone. Sustenance above this  supporting cushion will allow the index to garner bullish strength and a breach below this zone can invite further selling pressure. 

The benchmark index began the week under selling pressure. With the upper perimeter of the rising channel acting as stiff resistance, the price action was coerced into forming an intermediate top. The formation of a bearish engulfing candle pattern on Monday prompted a respite in the upside, and then the index witnessed follow-through sessions on expanding volume as the selling pressure intensified. The index pared 426 points from its previous weekly close and added 2 distribution days during the week. It ended the week with an inside bar that called a halt to the four-day streak of lower lows after finding immediate support at the 20-day MA, which is currently trading near 22477. The VIX traded at elevated levels continuing its 5 weekly higher closing streak. The market breadth turned frail during the week. The number of stocks trading above the 10, 20, and 50 daily MA dropped below the 50% threshold, indicating a dodgy intermediate trend. The momentum market breadth also softened during the week. However, the market breadth volume witnessed a continuance in expansion, indicating selective accumulation. Technically, the 10 weekly MA and 50 daily MA are trading near 22444 and 22396 making it a crucial support zone. The index is anticipated to invite further selling pressure on a breach below this support zone on a closing basis. In the coming week, we anticipate volatility persisting ahead of the election results and reckon to restrain caution, control leverage, and apply risk management techniques.

This week, the 50 index continued its momentum amidst the pullback rally from the channel’s support. It continued the streak of 10 higher high trading sessions and closed the truncated week in the upper quartile of the trading range after recording fresh life-highs of 23026. Volatility, too, remained at elevated levels. The price action is trading at a distance of 2.3% from the mean on weakening market breadth. The populace of stocks trading above 10 and 20 daily MAs dropped below their 50% threshold, indicating a frail intermediate trend, and the momentum breadth waned on expanding market breadth volume, indicating selective accumulation. The index is anticipated to consolidate as we approach the election result, and drawdowns restricting up to 50 daily MA currently trading near 22342 will act as an opportunity to capitalize on dips.

Sup: 22750-22500-22350

Res: 23050-23180-23380

The 50 index commenced the week on a jittery note; however, after finding modest buying interest at the support of the rising channel, the price action witnessed a technical pullback to close in the higher quartile of the weekly trading range with a higher high structure. It closed 440 points higher from its penultimate weekly closing, marginally above the psychological mark of 22500. The week saw improving stock participation and refining momentum market breadth by expanding market breadth volume, indicating potential accumulation. Technically, the zone of 22500-520 holds an overhead resistance zone. It will be crucial for the index to decisively reclaim this zone on a closing basis to continue to attract bullish strength.

Supp: 22300-22150-21820

Res: 22520-22800-22900

The benchmark index commenced the week with selling pressure and trended in that direction as the week progressed, breaching below the 20 and 50 DMA and adding a distribution day. However, the index pulled back into the rising channel on above-average volume on Friday. However, most broader indices and sectoral themes remain in a confirmed uptrend with worsening momentum. On the market breadth front, the populace of stocks trading above 20 & 50 DMA have dropped below 50%. On the momentum participation front, the numbers have seen a declining slope on subdued market breadth volume. This indicates an interim paucity of demand at higher levels. We reiterate market status as an uptrend under pressure and anticipate the index to trend in a broader range of 22775-21600 and offer a directional bias once either of the levels is taken out.

Supp: 21700-21600-21450

Res: 22330-22430-22500

The 50 index wore a corrective look and closed the week 420 points lower than its previous closing below the 50-daily MA. The distribution day count increased to three during the week, and the uptrend remains under pressure. However, the price action managed to defend the 20-week MA coinciding with channel support and the 100 MA on the daily timeframe, making the zone of 22000-21900 an immediate and crucial support zone. The index is anticipated to see a mild technical pullback, with the zone of 22300-22500 acting as immediate resistance in the coming week.

Supp: 21930-21770-21650

Res: 22150-22300-22500

The benchmark index commenced the truncated week on a positive note and consolidated higher, with the median of the ascending channel acting as immediate resistance. That, coupled with the pivotal resistance near 22775, caused the index to succumb to selling pressure and pare all gains. Yet, escaping a distribution day, it saw a muted weekly closing against a 33.8% rise in the VIX. The populace of stocks trading above 10DMA slipped below the 50% threshold while those above 20DMA continued to stand above the 50% threshold. The momentum market breadth remained mildly positive, while the market breadth volume indicated modest accumulation. Overall, the market breadth saw mildly weakening. However, the swing confidence remains high as most broader indices and sectorial themes remain in an uptrend with improving negative momentum. On the derivative front, 22800CE saw the highest build-up and addition of open interest, indicating stronger resistance. Technically, the zone of 22330-22290 acts as an immediate support zone and a weekly closing below it will invite further selling pressure.

Supp: 22290-22150-21860

Res: 22775-22900-23050