The Indian equity market resumed their up move in this week also. The headline index continued with its pullback and moved past a few important levels while protecting the key supports. On the Technical note, the Nifty index is moving in the form of higher highs and higher lows formation from the past three weeks.
The level of 16045 is likely to act as immediate support for the markets. The highest Call OI is presently placed at 16200. This indicates that for the coming week, NIFTY price action against the 16200 levels will be important to watch. If the NIFTY stays above 16200 for long, it can move towards 16595 levels. Whereas, if it slips below 16200, then we may see some correction, also range bound market. The weekly RSI is near 46.31, and not showing any divergence against the prices. We suggest traders maintain a mild bullish outlook going into the next week.
The Bank Nifty and the Financial Services index positively outperformed the front-line NIFTY. The index prices are trading near Channel support on weekly time-frame points out strength for the upcoming session. In this scenario, we may see upside momentum in the index towards 35900/36240 levels. On the downside, Bank Nifty has immediate support at 34970 level. We believe that in the near term, volatility could be there because of the uncertainty across the globe. Hence, a stock specific approach is advisable for the coming trading sessions.