Week Ahead

Last week, the markets were swinging in a 2,000+ points range, the widest weekly range since May 2020, according to experts. This was after the decisive victory that was predicted for the BJP in the exit polls didn't come through. By the end of the week, the market had recovered to its earlier levels.

This week, after the new government takes charge, we should see calmer waters.

Now the Market would look towards IIP data, Inflation, Passenger Vehicle Sales, Global economic data, FII flows for the direction.

It's been a wild week for the Nifty, swinging in a range of over 2,000 points. Also, with every trading session, the index opened either gap up or gap down. Despite this, the index gained 3 percent.

Technically weekly chart (from the past week) revealed a Hanging Man-like candlestick pattern. A negative divergence was also spotted in the daily time frame on the 14-period RSI (relative strength index). A negative divergence occurs when the price is touching a higher high, while the RSI forms a lower high. This clearly indicates that traders should avoid building over-leveraged positions and chasing prices.

Options data suggests that the key resistance level for Nifty 50 will be 23,700, the support level will be 22,500, and the immediate range will be between the two.