Saturday, 28 January 2017

NIFTY/BANK NIFTY AND FUTURE OUTLOOK

Nifty Outlook :-

 It was a remarkable week as the Nifty index posted gains on all the four trading sessions of the week. The robust market breadth indicates broad market participation with all the sectoral indices ending the week in positive territory.
 nifty-future1
Technically, we witnessed a positive crossover of ‘5 EMA’ and ’20 EMA’ on weekly chart, indicating strength in the index. Thus, the ongoing uptrend in the indices could continue further towards 8737 and 8820 in near term. However, citing the ‘Union Budget 2017-2018’ which is scheduled to be announced on 1st February, there could be increased volatility during the forthcoming week. Hence, all must advise their clients to trade with proper risk management strategies on their trading positions.

During a strong momentum phase in the index, corrective dips are generally bought into and thus, any correction in the index due to the volatility would be a buying opportunity. Therefore, traders should trade with positive bias and avoid creating short positions in the corrective phases of uptrend. On the lower side, 8530 and 8460 are likely to act as strong support levels for the Nifty.

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