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Short Term Upside Of 250-275 Points Likely

The prognosis for the index remains range bound and unexciting, with an immediate upside of 250-275 points likely

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Last week turned out to be a weak one for the NIFTY, with the index undergoing a momentum correction of 150 points. With the options expiry due in three days, we’re quite likely to have another volatile trading week to wrap up the month.

While the short-term trend turned bullish when the NIFTY broke past the 20-day moving average at the start of the month, the stochastic oscillator on the weekly charts clearly signals that the broader momentum still remains weak, which means that there’s no tearaway rally in sight for now.

With the stochastic oscillator on the daily charts moving into oversold, and the index nearing the 20 DMA once again; the next immediate move for the index is likely to be bullish, with a 250-275-point upside that’ll take the NIFTY past the 10,775 mark. 

With crude sinking below the $59 mark, and corporate results proving satisfactory, the downside remains capped for now. Interestingly, last week saw DHFL posting a net profit of 439 Crores (up 52%).

The prognosis for the index remains range bound and unexciting, with an immediate upside of 250-275 points likely.


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