Indian Stock Markets Next Week: Nifty At Support, Bank Nifty Struggles

31 December 2017

Trading in Indian stock markets closed with positive numbers on Friday. Weekly candlestick charts of Nifty, Bank Nifty, Sensex and Nifty IT are  showing  a mixed trading pattern in these markets.

As we have been continuously writing, day trading in Indian stock markets has seen Nifty finding support and trying to trade higher, while Bank Nifty has been struggling and trading in a range. The banking index has been showing weakness, dragging Nifty down at times.

Weekly Candlestick trading chart of Nifty 50 shows that the index has found a new support near 10,500. This mark used to be Nifty’s previous resistance. Last week’s trading range has been quite narrow, and Nifty still faces is the risk of falling below this support level.

How Will Nifty Trade Next Week?

Nifty’s weekly candlestick chart shows that the index traded within a hundred points’ range, with support coming near 10,450 and resistance near 10,550.

nifty charts technical analysis

Nifty candlestick charts shows support for the index. But Bank Nifty charts are showing pressure on the index. (Chart courtesy:

Next week too, these levels will make Nifty’s immediate trading range. (We will discuss intraday support and resistance levels for day trading in Nifty on Monday, which will help you in plotting your intraday trading strategies.) As long as Nifty holds above 10,448, the index will be in a strong support zone and will try to rally forward.

However, if Nifty falls below this support then the index may once again turn range bound, and trade down to it its previous support level of 10,350.

How Will Sensex Trade Next Week?

BSE sensex closed above its major resistance of 34,000 on Friday.  This level used to be its previous strong resistance. Like Nifty, Sensex is still a close to its previous major resistance level and faces the risk of dropping below that level if markets trade negative for any reason at all.

Weekly trading charts are showing Sensex making a positive breakout, But daily trading charts are showing a range bound trading pattern in Sensex, where the index faces resistance near 34,060. On Monday, there will be two trend possibilities for Sensex; either the index will stage a trend reversal and trade within last session’s high and low levels, or it will stage a positive breakout and start trading above previous days closing level. If Sensex succeed in crossing above  previous sessions’ high level of 34,080, and 34,100 is crossed, then  it will have greater chances of sustaining its positive breakout and climb higher in forthcoming sessions.

How Will Nifty IT Trade Next Week?

This tech index has been in a very clear uptrend last week. It staged a huge positive breakout on both daily and weekly candlestick trading charts, therefore one can expect the rally to continue in Nifty IT in futures sessions.

How Will Bank Nifty Trade Next Week?

Bank Nifty trading chart is the only one showing range bound trading pattern. On daily candlestick charts, Bank Nifty formed a green candlestick, but on weekly chart, Bank Nifty made a negative candlestick. The weekly chart also shows a very narrow trading range in the banking sector last week. Next week, Bank Nifty can either trade within last week;s range or may all further towards its range support levels. On daily charts, the trading range of Bank Nifty has been turning narrower, and in the last two sessions,this banking index traded between a very narrow, 150 points’ range ( between resistance of 25,550 and support of 25,400).

In recent weeks, Bank Nifty has been the only hurdle, stopping Nifty from rallying ahead. This index is expected to continue trading sideways,  and may continue to pressurize Nifty back in a range. As we keep saying about day trading strategies in range bound trends, pivot trading remains the best trading tool for day traders. Use those tools for trading in Indian markets next week, if the trend turns range bound.

Read our previous trading analysis of Indian stock markets.

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