After touching an intra-week low at 8,321, the Nifty bounced back and closed the week on a slightly positive note by gaining 11 points. It moved within a wide sideways band of 8,350 and 8,650.
The week ahead:
The index faces a significant resistance ahead in the band between 8,600 and 8,650. A decisive breakthrough of this resistance band is needed to strengthen the bullish momentum and take the index higher to the next resistances at 8,808 and 8,957 levels.
The Nifty has moved past its 200-day moving average poised around 8,425 on Friday. Inability to move beyond the 8,600-8,650 resistance band can keep the index moving sideways in the wide range between 8,350 and 8,650 for a while before taking a clear direction. Key supports to note are pegged at 8,450, 8,400 and then at 8,350. But, the short-term trend will alter downwards on an emphatic fall below 8,350 levels. Such a fall can drag the index down to 8,200 or even to 8,000 levels.
Medium term trend: As the index continues to trades around the key medium-term trend zone between 8,600 and 8,650, we reiterate that a conclusive breakthrough of this band will have a bullish implication and take the index northwards to 9,000 levels. Conversely, a fall below 8,200 level will diminish the upward momentum.
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