Weekly Index Outlook | Nifty 50: Short-term outlook is bullish

Nifty 50 (21,894.55)

Bullish. More rise on the cards

Nifty began the week on a weak note. It broke below the key support level of 21,500, but did not sustain. Nifty fell to a low of 21,448.65 in the first half of the week, but then managed to recover all the loss. The strong rise on Friday indicates strength in the upmove. Although there is an immediate resistance around 21,900, the chances are high to breach it. As such, the outlook for the coming week is bullish. Nifty can break 21,900 and rise to 22,300-22,400 this week. If the momentum is strong, a break above 22,400 can also happen eventually. Such a break will open the doors for the Nifty to target 22,600-22,700 in the short term. Support for the week will be at 21,700-21,650. Below this, 21,500 will continue to act as a strong support. The short-term outlook will turn negative only if the Nifty declines below 21,500.

Nifty Bank (47,709.80)

Looks weak with a rounding pattern

Nifty Bank index has been stuck in a sideways range of 46,900-48,650. That leaves the short-term outlook unclear for the index. A breakout on either side of 46,900-48,650 will determine the next leg of move. A break above 48,650 will be bullish. That can take the Nifty Bank index up to 50,300. On the other hand, a break below 46,900 can drag the index down to 46,200-46,000. A further fall below 46,000 is less likely. As such, the Nifty Bank index can reverse higher again from the 46,200-46,000 region and rise back to 48,000 and higher over the medium term. On the daily chart, a rounding pattern is clearly visible. That leaves the bias negative for the Nifty Bank index to break the range below 46,900 and fall to 46,200-46,000 first.

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