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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

The The 50 index commenced the week on a gap-up opening, reclaiming the 50DMA following a knee-jerk reaction witnessed during the closing of the penultimate week. The price action trended in the positive direction to close 1.2% higher on a weekly basis, while the VIX plummeted 18.8%. Most broad and sectorial indices are in a confirmed uptrend with improving momentum. On the market breadth front, the populace of stocks trading above 20 and 50DMA are well above the 50% threshold, indicating positive participation of stocks. The momentum breadth remained positive on subdued market breadth volume, indicating lower accumulation than in the previous upswings. Technically, the price action has an immediate support zone from 22300-22230, and sustenance above this zone will allow the index to continue to attract bullish momentum.

Supp: 21900-21650-21450

Res: 22050-22380-22525

On the price action front, the 50-index commenced the week on a strong note, closing at an all-time high. The index then succumbed to selling pressure as the truncated week progressed and closed in the lower quartile of the trading range adding a distribution day on Friday. It, however, closed 5 points higher than the previous week’s closing. While most indices and sectors remain in a confirmed uptrend on improving momentum, the market breadth pertaining to momentum participation stocks saw a downward-slopping trajectory for the week on subdued market breadth volume. This potentially indicates an interim paucity of demand at higher levels. We anticipate the index to trend sideways unless it decisively reclaims the all-time high mark while continuing to offer opportunities in selected pockets.

Sup: 22500-22300-22100

Res: 22775-22860-23000 

The benchmark index commenced the holiday-truncated week under selling pressure, opening 149 points lower on Tuesday; however, with relatively lower volume, it escaped the distribution day. It found modest buying interest near the support of 50DMA and formed consecutive laps, closing the week 230 points higher in the upper quartile of the trading range. The VIX remained muted, and the market breadth regarding momentum participation saw a stronger recovery with supporting market breadth volume. The number of stocks trading above 10, 20, and 50 DMA witnessed gradual improvement. On the derivate front, the 22500CE has witnessed the highest open interest build-up, indicating immediate resistance and with 50DMA, the zone of 21950-21850 offers stronger support. The index is anticipated to trend sideways until the levels are taken out decisively.

Supp:22120-21950-21850

Res: 22525-22650-22860 

The benchmark index commenced the holiday-truncated week under selling pressure, opening 149 points lower on Tuesday; however, with relatively lower volume, it escaped the distribution day. It found modest buying interest near the support of 50DMA and formed consecutive laps, closing the week 230 points higher in the upper quartile of the trading range. The VIX remained muted, and the market breadth regarding momentum participation saw a stronger recovery with supporting market breadth volume. The number of stocks trading above 10, 20, and 50 DMA witnessed gradual improvement. On the derivate front, the 22500CE has witnessed the highest open interest build-up, indicating immediate resistance and with 50DMA, the zone of 21950-21850 offers stronger support. The index is anticipated to trend sideways until the levels are taken out decisively.

Supp:22120-21950-21850

Res: 22525-22650-22860 

The benchmark index commenced the week with a muted opening, marked the weekly low at 21710, and observed a counter-trend reclaiming the 50DMA as the week progressed. The index closed 73 points higher from the previous weekly closing. While the uptrend continues to remain under pressure, the weakening market breadth saw a recovery in terms of extending key moving averages and momentum participation. On the derivative front, the strikes of 22100PE added the highest open interest (OI) while 22000PE has seen the highest OI build-up, and coupled with 50DMA, the zone of 21945-22000 now becomes an immediate and a relatively stronger support zone. The 50-index is anticipated to continue to attract further bullish strength, provided the support zone remains intact.

Sup: 21945-21700-21550

Res: 22120-22300-22530 

The key domestic index witnessed a muted trading week; however, it commenced the new financial year on staggering market breadth. As the price action trended sideways near the life-highs, it printed the highest number of advancers with respect to momentum participation. It also saw an increasing populace of stocks trading above 50 and 20 DMA. All in all, these are classic indications of improving market breadth. On the technical front, the price action has immediate support near the zone of 22300-22250, and sustenance above this zone will allow the index to garner further bullish strength.

Sup: 22350-22250-22000

Res: 22619-22700-22830

The 50 index commenced the week under selling pressure, broke down the rising wedge pattern, and closed the week showing resilience to the 50DMA after erasing nearly 500 points on the highest volume recorded in the last 3 quarters. Not only did the week see discouraging market breadth, but major sectoral indices also showed early signs of deteriorating momentum. The other broader indices continued to trend in a downswing. This warrants caution, and a breach below the 50DMA will downgrade the status as the current uptrend is under pressure.

Supp: 21900-21650-21450

Res: 22050-22380-22525

Following a strong closing in the penultimate week, the previous week saw a muted opening and traded thinly in the range of 300 points without offering any directional bias. Baring the large-cap index, the broader indices continued to trend under pressure, and the week saw underperforming breadth and momentum, with VIX cooling off 9.2%. The 22500CE saw the highest open interest build-up on the derivative front, indicating immediate resistance. The index has immediate support near 22250, and succeeding in showing resilience to drawdowns below this zone will allow the price action to garner further bullish strength.

Supp: 22420-22250-22000

Res: 22500-22700-22850