markets had an eventful and very volatile week. Next week will see F&O expiry on Thursday and that will mean more volatility in the week to come.
Stocks across the board saw sharp short covering as traders caught with short positions on stocks and indices scrambled to cut their losses short and bought back heavily causing the index to rise close to 3 per cent on Friday.
Markets are likely to continue to rise as Nifty managed to break past an important resistance on the charts the one at 5340 on the Nifty.
Next serious resistance will be close to 5540 and there is a strong possibility that we might see the Nifty taking a stab at that level this coming week.
Traders should bet on the markets to go up as the current pullback could extend for some more time and stocks could add some more weight in the days to come.
Strong moves in banking, capital goods, metal and power stocks caused the flare up in the index on Friday.
Markets may remain buoyant and stocks in the IT, banking and power sectors should lead the charge as the index gears up to scale higher levels.
Real estate and pharma despite pullback in some stocks look weak on the charts and may continue to be a drag on the markets.
Traders in Nifty futures should buy the Nifty with a stop loss at 5420 and a target of 5540 and 5600 over the next few sessions.
Source: www.moneycontrol.com
Ravi Jhawar
Summer Intern-Technical Analyst
DENIP Consultants Pvt. Ltd.
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