#Nifty50 Market Update: A Week of Weakness and What Lies Ahead
This week, Nifty closed at 23,203, down by 228 points from the previous week's close. It touched a high of 23,391 and a low of 23,047, reflecting a volatile yet cautious market sentiment. The candlestick pattern for the week is indicative of weak market sentiment, signaling growing bearish pressure.
As highlighted last week, the market saw a bounce used by institutional players to offload their positions, leading to a sharp pullback. The Nifty was confined within the range of 23,950 to 22,900, as anticipated. Looking ahead, I expect Nifty to continue oscillating between 23,750 and 22,700 in the coming week.
From a monthly perspective, the market remains in a selling phase, and until either the monthly or weekly timeframes shift into the buying zone, or Nifty tests key support levels near 22,400/22,300, the bears will likely maintain control.
S&P500 Update: Recovery with Caution
Over in the US, the S&P 500 has bounced back from the lows of 5,773 and closed just below the critical Fibonacci resistance level of 6,013. If the index manages to stay above 6,013 next week, we could see it testing higher resistance levels around 6,100.
However, expect potential selling pressure to kick in on Monday, and if the index dips below 5,900, it could test key support levels at 5,821, 5,773, or even 5,700.
Bottom Line: Brace for Volatility Ahead
In conclusion, selling pressure is expected to persist in the markets for the time being. Traders should prepare for a bumpy ride as we navigate through these volatile conditions. Stay alert, manage risk, and keep an eye on critical support and resistance levels.
