Weekly Market Outlook for 3 Apr to 7 Apr

 
Nifty has consolidated within a range in the last couple of weeks. However, post the mid-week holiday, the index gave a breakout from this consolidation with a gap up opening on the last trading session and it rallied higher throughout the day to end above 17350 with gains of over one and a half percent on Friday.

Nifty Today:

Our markets finally witnessed momentum after consolidating in a narrow range for twelve trading sessions since mid-March. Nifty has formed a ‘Doji’ candlestick pattern on the monthly chart around its 20-months EMA. On the daily chart, the Nifty index had a hurdle around its 20 DEMA at 17200 which was surpassed with a gap up opening and this led to a positive sentiment throughout the day.  Now this has set the short term momentum positive as the readings on the daily chart have given a positive crossover. On dips, 17200-17100 which was acting as a resistance zone, will now be seen as a support zone on decline in the coming week. On the higher side, if the momentum continues, then the possible levels to watch on the higher side will be 17500/ 17600/ 17680. Traders are advised to trade with the momentum and look for buying opportunities on dips from a short term perspective. On the derivatives data, FIIs had rolled over short positions to the April series and since momentum has turned positive, it needs to be seen if they finally start covering their short positions which traders are waiting for. Their data in the coming two-three sessions will bring more clarity on whether the pullback will sustain, or will it be just a dead-cat bounce. 

Last day of the financial year (2022-23) ends on a positive note  

Amongst sectoral indices, the banking stocks have led this upmove while a pullback move was seen in many other sectors (including heavyweight RIL) as well. The last day of the financial year ending gave a boost to a lot of midcap and small cap stocks which had corrected sharply recently. 

Nifty & Bank Nifty Levels: