| by Admin
What traders should expect for the coming week ahead.
19th 0ct to 23 Oct 2020.
As we all witnessed an excess amount of profit booking this past week, our Indian indices like Nifty and Nifty Bank almost dipped 2.6% and 3.6% from their week's high respectively. Though they did manage to recover some points by the week's closing, so what should we expect for the week ahead? Is the Nifty's bull run has finally come to a stop? For some time at least.
As the bulls have rallied so hard in the past few months, running wild on speculations and global positive trends. Maybe it is a time when bulls will cool some steam off, as in the past two weeks a lot of negative news had been circulating in the markets. Whether it be the failed trials of the said covid vaccines, the ever-growing threat of the reoccurrence of a stronger more lethal mutated covid virus, the uncertainty of Donald Trump becoming a President of the United States of America again or not and then to make things worse big countries like England, France, and Germany imposing lockdowns again. It is really hard to say that our markets will take a leap forward and break the next resistance on its path.
If we take A look from a technical analysis point of view, then our index too appears to be range-bound. As Nifty holds crucial support down at 11300 and a heavy resistance at 12000 it will and is supposed to consolidate in this range for some time. There are some positive cues for Bank Nifty though as the quarter results of HDFC bank came in really good and way above the market estimations. It is a possibility that it will run up and along with it, the bank Nifty can also go up as it holds the most value in that index. So from my perspective Bank Nifty can outperform the Nifty in the coming week.
Ps.
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Rajatdeep Singh
Head Analyst/Equity Advisor
IFM Trading Academy, CHD