Data from global markets and expiry plays a crucial role in coming week : Epic Research

Weekly market report by Mr. Mustafa Nadeem, CEO, Epic Research

A week that started on a corrective and cautious mode due to weak global cues followed by Trump Speech on Tuesday saw a correction in first half. Nifty couldn't sustain the all time highs and ended down while it recovered in later part of the week sustaining the 9100 mark. Nifty made a Hanging man pattern this week thereby sending a cautious signal to investors and traders. A hanging - Man, bearish, is formed almost when an uptrend is near as there is sell-off seen with open and high being same while a body displaying the existence of bears at upper levels. Bulls try to cover the lower part making a shadow as same, or larger, compared to the body. This indicates as an early indicator of bulls losing the control and trend may reverse provided a confirmation with next closing below the shadow.

As Far as OI data is concerned, we have seen no respite for bears despite writing is seen at 9100 - 9200 which in turn indicates positions being created at higher levels but sustainability of level of 9100 is still a concern. There is a broader range in play with 9000 being the crucial support on downside while on higher side we have 9200 as a wall being hit again and again. A breach of this will give a final decisive movement to broader indices. Short buildup is seen at 9200 and 9100 on both sides indicating a sideways momentum.

Nifty bank continues to lead with PSU gaining on the back of capitalization in some of the banks while selling in IT and Pharma continues. In coming week we will be having number of data from global markets and expiry as well making it a crucial play. Also, trailing of stoplosses is advised.

Source : Equity Bulls

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