Market Outlook – Nifty Near Critical Levels! Caution Advised
Nifty Weekly Wrap-Up:
The Nifty 50 index closed the week at 25,003, posting a solid gain of +250 points from last week's close. It touched a high of 25,029 and a low of 24,502 during the week.
But here’s the twist—while the uptrend looks strong, we’re now at a crucial inflection point on the weekly chart.
Technical Outlook – Is a Bearish “M” Pattern Forming?
On the weekly timeframe, Nifty is at a level where a bearish M-pattern could potentially develop. To complete this pattern, the index could pull back towards support levels at:
24,414
24,200
24,000
If the selling deepens, the final support zone lies between 23,900–23,700, where a bounce-back is likely.
Bullish Scenario – Can Nifty Break Out?
If Nifty holds above 25,000 for at least 2 consecutive sessions, it could trigger a short-covering rally, paving the way for a move toward key resistance zones at:
25,400
25,565
26,100
Next Week’s Expected Range: 24,500 – 25,500
This range should see most of the action next week. If you're holding long positions, now is a great time to:
✔️ Lock in profits
✔️ Trail stop-losses
✔️ Prepare cash reserves for potential dip-buying opportunities
Global Watch – S&P 500 Hits Key Resistance
The S&P 500 closed near 6,000, up 100 points for the week. But heads up—it’s now testing a strong Fibonacci resistance at 6,013.
A rejection here could lead to a correction toward 5,900–5,850, a dip of 1.5–2.5%. If this unfolds alongside a Nifty pullback, it would align perfectly with our support targets around 24,400–24,500.
Final Takeaway:
Markets are looking stretched. While momentum remains positive, profit booking at higher levels is essential. Don’t get caught unprepared in case of a reversal. Stay tactical, stay liquid.
Smart money is already locking in gains. Are you?
