The week gone was a truncated week and Nifty ended the week on a positive note with gains of 1.30% and Sensex surged 1% on a week-on-week basis. Initial half of the week bulls staged a smart recovery, however, Thursday onwards profit booking emerged in market amid global weakness after President Trump’s ability to get the economic agenda going. Followed by the terror attack in Spain and on Friday index heavyweight Infosys dragged the market lower after the shocking announcement of Vishal Sikka’s resignation as Company’s CEO and MD. In the coming week on the domestic front there is no major event and it’s a truncated week, the market will remain closed on Friday on account of Ganesh Chaturthi. While, on the global front, the US existing home sales data is due for release on Thursday, August 24th, and Federal Reserve Chair Yellen is due to make a speech at the Jackson Hole Symposium on Friday, August 25th.
Technical View: After forming a large bear candle in the week ended 11th August, 2017, Nifty has followed up with a small body positive candle with a long upper shadow, which is considered as an Inside bar. After breaching the support level of 9850, this support level is based on the up-ward rising trend line joining from the lows of 7893, Nifty showed an upside bounce back during the week gone, but was not able to sustain above the previous broken trend line at 9946-9950. Going forward immediate support is placed in the region of 9770-9790 as 9790 is a 50-day EMA and also its 50% retracement level of the entire rise from levels of 9448.75 to 10137.85 and next support is pegged around levels of 9700-9710 as its 61.8% retracement level of the entire rise from levels of 9448.75 to 10137.85. On the upside, the region of 9,920-9,950 is a major hurdle for the Nifty, momentum is likely to pick only if Nifty sustains above this resistance level.
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