Equity markets have seen strong bounce last week. However, this is just a corrective bounce. Strong resistances are coming up for the #Nifty and #Niftybank indices which can halt the rise. We expect the benchmark indices to reverse lower after testing their resistances and fall more in the coming weeks.
#Nifty has strong resistance in the 19,400-19,500 region. We expect the #Nifty to reverse lower again from this resistance zone and fall back to 18,800-18,700 first and then to 18,500-18,300 eventually in the coming weeks. To prove this view wrong, #Nifty has to rise past 19,500.
#Niftybank index has strong resistances at 43,500, 43,650 and then at 44,000. We expect the #niftybank index to turn down from either of the three resistances and fall to 42,000 and lower in the coming weeks. To negate this fall, #niftybank index has to rise above 44,000.
#Dowjones will need a strong follow-through rise from here. Resistance is at 34,250 and support is at 33,650. A breakout on either side of these levels will decide the next move. It is a wait and watch situation this week.