This week Nifty expanded its trading range with 340 points after the last week â€œNW10â€ pattern. The market saw the downside of 250 points after breaching the support of 5,750.
Nifty tested resistance at 5,800 level. During the week, Nifty extended its fall on the breach of its support level at 5,670.
The market tested 5,460 level before settling above 5,500 level. The market has comfortably breached the 200-day moving average of 5,618. The market has tested and closed near its 50-week average of 5,536.
Technical selling pressure and pessimistic view on the fundamental factors had effects on the Nifty.
Stock Market: Weekahead
For the coming week, the level of 5,530 should be watched cautiously. Failure to close above this level will trigger further unwinding of longs and selling pressure. On the downside, 5,350 is the next major support for Nifty. On the higher side, a pullback can be expected if Nifty stays above 5,530 for a minimum of 5,630 level and a maximum of 5,700 level.
The broader strategy should be to reduce longs at each major resistance level. Banking, oil and gas and engineering are the sectors that will remain in limelight during the week.