Weekly Market Outlook for 15th January to 19th January

In the week gone by, Nifty formed a support base in the range of 21500-21450 and rallied higher during the latter part of the week. The Nifty index registered a new record high in the last trading session and ended around 21900. The IT index was the outperformer as it rallied post the results of heavyweights TCS and INFY and the index posted gains of over 5 percent on Friday.

Nifty Today:

The Nifty index consolidated in a range for a few days as the momentum readings were overbought at the start of this month. However, the index did not breach its important 20 DEMA support and it resumed its uptrend to mark a new record high on Friday. The up move in the last couple of sessions was supported by the index heavyweights as the IT sector witnessed a good buying interest post the quarterly results from INFY and TCS. Thus, the trend for the Nifty index remains up as it has continued the ‘Higher Top Higher Bottom’ structure. On the daily chart, the index is seen trading in a ‘Rising Channel’. The immediate resistance for the coming week will be seen around 21970-22000 zone where a retracement level is placed. Above that, the index could approach the higher end of the mentioned channel which is seen around 22200-22300 zone. On the flipside, the consolidation breakout level on Friday at 21700 will be seen as the first support followed by the 20 DEMA and the swing low support which is in 21500-21450 range.

                                                Nifty resumes uptrend and hits new record high again

Traders are advised to continue to trade with a positive bias until and above mentioned supports are breached or any reversal sign is seen. In the last couple of sessions, the index heavyweights have witnessed a better momentum and hence, one should focus on large cap stock at the moment.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: