Nifty week ahead: Bulls will search for relief as lower levels experience selling weariness

Despite several obstacles, the market held up well, and the major indices Nifty and Sensex were able to conclude higher for the second week in a row. At lower levels, there is selling tiredness as the market recovers from every intraday dip despite numerous obstacles like a decline in global markets, a weak rupee, and a windfall tax on domestic refining companies. Bulls will seek for a relief rally if global markets stay stable even though FIIs are still selling but the momentum has greatly decreased. The dollar index and rupee movement would be other key variables among crude oil prices.

Technically, Nifty is admirably respecting the 15700-15500 zone, but the 20-DMA, which is currently at 15827, is acting as a powerful barrier to the upside. Above this, we can anticipate a surge for short-covering that will head beyond 16050/16200 levels. Up until the Nifty trades above the 15500 level, the bulls will be in control; below 15500, the weakness may once more resume toward the 15350/15180 levels.

Bank Nifty is maintaining its present level of respect for 33000, but the 20-DMA is functioning as a significant barrier at 33700; beyond this, we may see a short-covering rally towards 34150/34500 levels, while if it drops below 33000 level, 32500 is the next important support level.

According to the derivative data, FIIs have a 16 percent long position in the index future, and the put-call ratio is now at a level of 1.14, suggesting that there is good potential for a short-covering rise.