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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

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