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The 50 index commenced the week with selling pressure and traded negatively until it bounced back sharply from near the 20DMA on the Friday surging to new life highs of 22419. With this, the index extended its bull run for over 10 consecutive months, with positive momentum worsening. Despite a positive weekly closing, only 50% of the stocks closed above their 20 and 50DMA on lower market breadth volume, indicating a weakening breadth and a higher probability of dwindling breakouts. While the 50 index has scaled to new highs, the small and midcaps are yet to reclaim their shakeout pivots, thereby the largecaps are anticipated to offer more comfort as we advance.

Supp: 22290-22100-21980

Res: 22460-22520-22720

The benchmark index commenced the week in red; however, after managing to escape a distribution day, the price action found positive momentum for the week and closed in the upper quartile of the weekly range. With most sectoral indices continuing to trend in a confirmed uptrend, the % of stocks trading above 20, 50 & 200 DMA saw an improving trajectory compared to the previous two weeks, indicating improving market breadth. This is a positive sign. The VIX cooled off 1.5% during the week.  As we advance, the zone of 22050-22125 acts as immediate resistance and the index is anticipated to attract further bullish strength on decisively reclaiming the zone on a closing basis.

Supp:21800-21700-21500
 Res: 22125-22200-22350

The 50 index opened on a tepid note, marked its weekly high at 22053, and following the RBI’s monetary policy announcement holding the rates unchanged, the price action plunged 293 points on Thursday and closed the week at 21782. The Friday trading session was more of a scare than a shakeout, and the increasing frequency of such unnerve trading sessions invites a higher probability of a forthcoming pullback. The VIX closed 5.1% higher during the week, which warrants a prudent approach in the coming week. The index is anticipated to offer a directional bias on the break above 22115 or a crack below 21450 levels.

Supp: 21700-21450-21130

Res: 21850-22000-22115

The 50 indexes trended sideways until the penultimate day of the week, with the polarity resistance near 21800 acting as an immediate hurdle. It witnessed a rejection from the new life highs of 2212 and failed to reclaim the new life highs or the previous gap-down area. The VIX inched 6% higher during the week. The bull swing persists in the late stage of mid, small and microcap space as they continue to showcase relative strength compared to the 50 index. Going forward, the zone near 21600 will act as a key immediate support and sustenance above this level on a closing basis will allow the index to attract further bullish strength.

Support: 21800-21600-21400

Resistance: 21950-22125-22360

Despite the 50 index plunging over 550 points in the penultimate week on the highest volume compared to the previous 118 weekly trading sessions, the price action closed above its previous week’s low, failing to show any major follow-through on the downside. The bull swing seems exhaustive in the larger cap indices but persists in the late stage in the mid, small, and microcap space. While the broad indices are yet to exceed the day’s high, many stocks already indicate relative strength. This further validates the broader market’s attempt to show resilience to drawdowns. The zone of 21000-20900 will act as a cardinal support, and sustenance above it on a closing basis will be the key to attracting bullish strength.

Support: 21180-21100-20900

Resistance: 21490-21700-21850

The weekly Nifty 50 candle implies an engulfing scenario, with price submerging major portion of previous week’s move. This reveals selling pressure, which may persist in the upcoming sessions. While the fragile bias continues to haunt Nifty around 22000 mark, the support area of 21500 -21450 keeps the underlying momentum upbeat. Only an aggressive breakdown beneath this support area could dent the positive sentiment and market could see an intense sell-off. A breakout over 22000 -22200 levels would signal the start of Nifty 50 entering fresh leg of upside.

Support: 21500 -21250 -21000

Resistance: 22000 -22200- 22450

The index opened the week and trended sideways following the formation of a bearish engulfing pattern, however, the price action showed resilience to follow through the candle pattern throughout the week. The index rebounded sharply from the support of 20DMA resulting in a small bullish flag breakout which indicates potential signs of trend continuation. On the derivative front, the 21700PE strike added the highest open interest. With this, the supports are now dragged to the higher levels of 21700-21600 and sustenance above this zone on a closing basis will aid in garnering further bullish strength.

Supp: 21800-21700-21600

Res: 21900-22000-22200

The benchmark index started the week on a positive note and marked new life-highs followed by two consecutive distribution days. However, the index rebounded in the final two trading sessions of the week and saw the weekly closing on an indecision note failing to offer any directional bias. On the derivative front, the strike of 21800 added the highest call open interest indicating immediate resistance. The levels of 21550-21450 offer immediate support and sustenance above this zone on a closing basis, the index is anticipated to garner bullish strength.

Supp: 21450-21250-21000  

Res: 21800-21850-2200

The benchmark index ended the year on a buoyant note after a stellar run-up of 7.9% points in December and a 19.7% YTD basis. The closing week of the year remained trending barring the final trading session of the year after establishing a 472 points weekly trading range. The VIX surged 5.8% to 14.5 levels despite coming off from its weekly high. Considering the extended bull run, the index is anticipated to start the new calendar year on a quiet note and the consolidation is likely to continue in the range of 22000-21500 based on weekly option expiry data and a directional bias can be concluded once the range is taken out on a closing basis.

Support: 21700-21550-21440

Resistance: 21800-22000-22200

The front-line index trended volatile in the week gone by entering a broad consolidation range of 616 points. The index demonstrated resilience in the last two trading sessions of the week from the key support near 21000 following a sharp sell-off on Wednesday, affirming a bullish sentiment. With Nifty ending its streak of 7 weekly higher closing, the VIX spiked 4.4% during the week. The volatility is anticipated to get in on the act above 14.6 readings. On the derivative front, 21000PE saw the highest open interest build up offering crucial support. All in all, the index is anticipated to attract further bullish strength on a decisive closing above 21490.

Supp: 21280-21100-20920

Res: 21420-21600-21800