EquityPandit’s Outlook for Nifty for the week (May 06, 2019 – May 10,2019):
NIFTY 50 Index closed the week on negative note losing -13.90 Points -0.12 %
Weekly High: 11796.80
Weekly Low: 11624.30
Weekly Close: 11712.25
Nifty last week sustained above strong support levels of 11550, Volatility may rule the market. INDIAVXI heading towards higher levels. Data shows volatility tends to boost in the month of election results, currently INDIA VXI volatility index is trading around 24 levels and can head towards 40 levels. This means higher volatility & higher option premiums. So stay caution as trade with strict stop loss or properly hedge you long or short position.
Technically on the daily charts we see minor support on the downside for nifty 50 index lies at 11550- 11500 levels, whereas minor resistance on the upside is capped around 11750- 11800 levels.
If nifty 50 index breaches minor support on the downside and closes below it we may see fresh break down and index can drag index towards major support on lower side around 11400- 11300 and if breaches minor resistance on the upside and closes above it we may see fresh breakout and index can head towards higher levels around 12100- 12200
Currently nifty 50 index is trading above 200 days exponential moving average and suggests long term trend is bullish. EquityPandit’s analyst predicts range for the week is seen from 12100-12200 on upside and 11400- 11300 on downside.