NIFTY-Weekly Outlook-Venkat's Blog

The Bulls regained the control and made a remarkable comeback. This action makes the base of 21840-940 range stronger for the near future at least. Now that the Index is back in the original channel and is expected to consolidate before taking further direction. The final session of the week/Month & quarter proved to be a volatile session with whipsaw moves and ended on a positive note to keep the positive sentiments alive.

A few observations from the weekly charts are:

• The index moved in a range of 569 points viz. between 21947 and 22516
  
• The oscillators of different time frames are stretched and showing mixed signals
  
• Option open interest to drive the direction of the market
  

Expected scenarios for the ensuing week

• Volatility and choppy moves likely to continue
  
• Index regaining the 22220 a positive sign
  

Additional interesting observations

• Index posted a bullish candle and re-entered the minor trend channel which it broke attempted closer to the ATH
  
• Index may find supports at 22220, 22070, 21970 and the index could face series resistances at, 22475, 22525, 22640
  
• There were multiple gaps created during this dream run. The levels were repeatedly mentioned in the previous blogs. Since they are far away for now, they will be inserted back when relevant
  

Final Note

• The Index has stayed well above 55 DMA at 21930 and the 200 DMA at 20379
  
• The weekly charts suggest that the Index is back in the previous channel after bouncing back from 55DMA
  
• The notable observation is that the daily charts show signs of turn-around of Oscillators and expect 21220 to hold. The scenario of 21640 22640 are the larger range indicated.
  
• Most likely scenario would be a consolidation between 22220 & 22650. Breach on either side requires reassessment of risk
  
• In the past few years the April month has produced higher levels yet the closing has been mixed. It remains to be seen how the scenario unfolds
  
• The Index repeatedly attempting 22525 barrier. Once cleared we may see another spike and a new ATH
  
• The Q4 results expected to be positive and keep the markets at higher levels. However, the uncertainties on account of the forth coming elections would keep the gains restricted
  
• Ensuing week is crucial for deciding the future direction and the target
  
• Going by the technical indicators the broader range for April is 21920-22765. Breach on any side requires re-evaluation
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  #Stay Safe
  
  Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.