What a week that was or rather what a big Friday that helped Nifty Future once again make 336 points for the week (High 5693 & Low 5357). While I had been mentioning in my post that 5700 was possible but had no idea that it could be achieved so fast - since there is no change in the ground realities. Nifty Future closed for the week at 5681.
As can be seen on the Weekly chart, we are at the uppermost point of the range, but considering the strength shown for the weekly close, we may see a firm opening on Monday when Nifty Future may face resistance at 5725-5750 range and when this is crossed 5825 is the next resistance level.
Considering the strength seen on Friday (mainly due to Infosys & Bank Stocks), I would not recommend sell at higher levels, but I do not feel the above levels can be crossed without a correction. Moreover, on Friday the 200 DMA is also 5700 almost the same as the high made for the day/week.
It may be interesting to note that the low of 5357 on Monday was made on 21st Mar, a Gann turn date. By the end of week we are up by almost 6%.
Next week could turnout to be an interesting one with Year end consideration, FNO settlement on 31st and Nifty Future close to 200 DMA and other major resistance levels.
In my view, it is better to book profit and may be regret later if market trades higher, rather than take additional risks at higher levels or miss the opportunity to take the profits.
Have a nice weekend!
Ketan Asher.
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