Nifty Outlook for the week dated 23 Jan - 27 Jan

Last week, Nifty opened on a quiet note and traded with positive bias for most part of the week. On week on week basis, the index rose 3.75%. The Nifty witnessed a strong intra-week rally and moved towards the expected level of 5,000 levels. On daily charts, it ended in a gravestone candlestick pattern, indicating the possibility of profit booking or consolidation. In the coming week, if it trades below 4,990, it may correct up to 4,930 and 4,840 levels. On the upside, if the index sustains above 5,100, it may test the 5,220 (200-day SMA). Traders are advised to stay cautious as volatility is likely to increase on account of the RBI’s monetary policy and F&O expiry.

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