As we mentioned in our last weekly market outlook that Nifty outlook is looking confused and we are bound to see some correction and consolidation in this zone.
The same indeed happened and Nifty found support near our mentioned level of 5155 suggested in last week's Market Outlook.
We mentioned in Daily Market Outlook dated 14th January that one must keep an eye on 5171 level of Nifty and any closing below it will be highly detrimental for Nifty.
So both our levels were respected and using our view traders must have minted good money.
This week market is looking well placed and fairly valued.
Banking stocks are getting weaker by the day but support from IT sector helped Nifty to retain higher levels.
Presently one must keep and eye on 5205-5194 range of Nifty and if Nifty tests these levels then we can have some problem.
If Nifty breaches 5193 then some more profit booking may creep in and last week's low will play important support for Nifty.
On the higher side Nifty has strong resistance at 5298 level which is also close to psychological level of 5300 from where we have seen correction in the week ending 8th Jan.
If Nifty manages to close above 5298 then Nifty may test 5331 level as well.
It is one sort of zenith for Nifty and to close above it Nifty need a lot of muscle power and bulls may find fatigue here.
Any closing above 5331 may pull Nifty to some more higher levels of 5357-5379 and 5400.
BankNifty is looking very weak owing to rising inflation and fears of interest rates hike.
BankNifty closed very close to important support level of 8912 and it is on the verge of breaching it in the absence of any positive news from this sector.
If BankNifty close below 8912 for 1 or 2 days then it may fall all the way down to 8771 level as well.
Although bank stocks are backed by an influx of assurance from various sides by big names so it is expected that it would find support very soon and we may find some rally as we saw last week.
Its better to wait for clarity in this sector and we should avoid bank stocks as smart money is chasing other sectors like IT.
Important Levels for Nifty
| Nifty Weekly Pivot : 5245 | ||
|---|---|---|
| Weekly Support | ||
| 5205 | 5167 | 5119 |
| Weekly Resistance | ||
| 5298 | 5331 | 5357 |
Important Levels for BankNifty
| Bank Nifty Weekly Pivot : 9110 | ||
|---|---|---|
| Weekly Support | ||
| 8912 | 8855 | -8810 |
| Weekly Resistance | ||
| 8995 | 9090 | 9240 |
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