Weekly Market Outlook for 18 March to 22 March

It was a week of correction for the markets where the Nifty started at new all-time high of 22525, but it then corrected throughout the week to end just above 22000 mark with a loss of a couple of percent. The correction was sharper in the Midcap and the Small cap indices which registered losses of 3.4 percent and 7 percent respectively.

Nifty Today:

Finally, our markets entered a price wise corrective phase during last week where stocks from the broader markets witnessed a sharp correction. The Midcap and the Small cap indices had already given a negative divergence as the recent new high in Nifty was not confirmed by new high in these indices. Nifty also gave breakdown from a ‘Rising Wedge’ pattern and is now hovering around its 40 DEMA support which has been a sacrosanct since last few months. Thus, 21900-21850 will be seen as an important support in the coming week and if this support breaks, then we can see a down move towards 21500-21400 zone. On the flipside, 22200 will be seen as important resistance on pullback moves which needs to be surpassed for any sustained upmove. Traders are advised to stay cautious for a while and trade with light positions until we see a move above the mentioned hurdle.

                                        Broader markets correct sharply; Nifty around crucial support

The Midcap and the Small Cap space witnessed a sharp price wise correction in last one week. Although some of the stocks have given some pullback from their respective supports towards the end, it is too early to predict that they are towards any intermediate bottom. It is better to keep a wait, watch approach, and analyze the same on follow up moves in the coming week.
 

Nifty, Bank Nifty Levels and  FINNIFTY Levels: