Weekly Stock Market Wrap is going to keep you updated with past week action and coming week forecast of India and US stock market. Here we will also include Gold, Silver, US Oil, Nifty, BankNifty and Indian Stocks’ trends, trades and strategy discussion.
Hello Folks, let’s take a look at the movement of Indian and worldwide stock markets. In this weekly article we will discuss what was happening in the markets last week and how the equity markets caused losses to the investors or made them profit by their moves. We will also know what the coming week will bring for us, so that no shocking surprise comes and shakes us suddenly.
Since my expertise is to understand the probable future movement of markets and any tradable instrument by looking at price and action, so I will bring the same analysis for you while focusing on chart analysis. It is my strong belief that markets are leading indicators and whatever is happening in the outside world that can have an impact on the markets is already discounted in the form of price and action on the charts. Let’s dive into the ocean of charts and find out what happened and what is going to happen!
Table of Contents
World Markets
US Markets
DowJones
This week the DowJones of US market witnessed a fall of 1.82%. Despite this fall, as you can see on the charts, the long term trend is still intact. While trading with continuing gains, the US markets moved towards overbought zones from where profit booking does not seem to be a big surprise. It is possible that the pressure may continue in the coming week as the DOWJONES still appears to be quite far from the nearby support levels.
US Bond Yield
On the other hand, US bond yields have also increased to 4.40 and this is one of the reasons for profit booking in US markets. If this bond yield comes down a bit in the coming week, then it can give a support to DowJones.
Nasdaq
On the contrary, the US technology index is making new highs and closed this week with a gain of .73% which shows the strength of US market. Its impact is also visible on Indian IT stocks and the Indian IT sector is also seen leading as a market leader.
S&P500
Real picture of US markets are visible here with S&P500, this index provides a broad view of the US market. Weakness of .64% was seen across the week. But strength was visible on the charts as the index is holding near the life time highs.
Overall, US markets are at their peak and there is a possibility of profit collection but the long term trend is still on the bullish side.
The support and resistance levels of DowJones are as follows:
Support – 42553, 42090Resistance – 44962
India Market
Nifty
Past week performance
After falling almost 11.50% from its top, Nifty has recovered almost 6.5% till the last trading session of this week. After spending the whole week in a consolidation phase, there was tremendous volatility in the market today on Friday. At one point it seemed that this week would end in the negative. I am sure that many intraday traders would have become victims of this volatility today. In the first half Nifty reached the level of 24180 breaking all the nearby supports but in the second half a surprising surge came which made nifty close at 24768 which is at the highest level of the whole week and gave a tremendous weekly closing, although midcap and smallcap shares were in decline and a recovery like that of Nifty index was not seen there.
Coming week forecast
1. Future forecast which can be understood by looking at the chart is that 24750 level which remained as a resistance level throughout the week, today on the last day of the week the market has closed above it which is a positive sign.
2. With this, the market has given a healthy close while still surviving above its previous month’s highs which is another positive sign for the coming week.
3. The candle formation you are seeing on the weekly chart is an INVERTED HAMMER formation which indicates bullish sentiments.
Coming week market sentiment is looking strong and the support and resistance areas of Nifty will be like this:
Resistance – 24792, 25507, 26261
Support – 24633-631, 24537, 24302
Bank Nifty
Past week performance
The last session of the week of Bank Nifty also remained quite volatile like Nifty and the same story was witnessed. Showing a consolidation phase throughout the week, today Bank Nifty also surprised everyone and showed both side movements of almost 1400 points in intraday which I doubt how many intraday traders would have been able to understand. But in the end, it was all good that at the end of the day Bank Nifty closed at its high levels. Although, Bank Nifty could not breach the previous week’s high of 53888. But Bank Nifty succeeded in forming a higher high on weekly closing basis which is a positive sign for the coming week.
Coming week forecast
A breakout is seen on the weekly chart completing a nice rounding bottom pattern with a beautiful double bottom support. This is a very strong sign and Bank Nifty’s all-time high is seen standing near to the current levels. If this all-time high is decisively breached then Bank Nifty’s chart will move into a blue sky zone from where a new upside formation will start.
Banking shares are moving very smoothly due to which a good inclination has been created among the investors towards banking shares and this can prove to be a big factor which can take bank nifty towards new highs and we are getting this indication from the price and action shown on the charts.
The support and resistance areas for the coming week on bank nifty are as follows:
Resistance – 53775, 54506 Support – 53380, 52760, 52264-055
Stock of the week (Long/Short)
Long Side Trade
This week UBL is coming in our setup where we will initiate the BUY side call. Levels and Chart image is from the cash levels and it needs to be converted into the future levels if the position is being made in FnO.
Buy at the CMP / 1992.00, Stop Loss at 1954.00, Target at 2105.00 with a Risk Reward Ratio of 1:3
Short Side Trade
This week POONAWALLA is coming in our setup where we will initiate the SELL side call. Levels and Chart image is from the cash levels and it needs to be converted into the future levels if the position is being made in FnO.
Sell at the CMP / 349.00, Stop Loss at 371.00, Target at 307.00 with a Risk Reward Ratio of 1:2
Gold Trade
Gold showed a good upmove this week but by the end of the week it lost almost all the gains. This week gold closed at $2647 with a gain of .56%. Gold is also feeling the pressure near its lifetime highs. But right now the long term trend of gold is bullish. This can be traded but it is important to wait for the levels to come.
Support and resistance levels for gold for the coming week are.
Support – 2594, 2422 Resistance – 2754, 2821
Silver Trade
Silver showed some weakness this week. It traded down by 1.35% during the week. Silver is now trading exactly near its lower band of the bullish trend, where a buy position can be taken with a strict stop-loss. If this support is broken on a closing basis, it would be wise to exit long positions as levels up to $27 would open downwards after that. This week is going to work for silver in the form of a make, break or consolidation near the support area.
The support and resistance levels are for Silver in the coming week.
Support – 30.43, 28.80, 27.90
Resistance – 33.79
Crude Oil (WTI) Trade
US Oil is trading near its levels which have been working as a support for it since November 2021. As you can see in the chart, taking support near $66.47, US Oil is repeatedly giving an up-move. This is its long-term and a strong support zone. If it breaks, then no nearby support is visible below and if it breaks out above the downward trend line coming from above, then there will be a possibility of an up-move starting. Currently the downtrend is continuing and all the moving averages are putting pressure on the resistance bank.
However, from its long-term support, US Oil has again shown a sharp up-move of 5.84% in the last week. So the strategy to trade US Oil should be the same that is to go short near resistance and take long trade with strict stop-loss near support zone.
Support and Resistance levels of Crude Oil are as follows:
Support – 66 – 66.47 Resistance – 71.59, 74.69, 75.05, 76.54
Conclusion and disclaimer
The content on MarkShala.com is intended for educational and informational purposes only. We specialize in writing blogs on financial planning, investment strategies, economic trends, and related topics. While we strive to provide accurate and reliable information, the content should not be taken as professional financial, investment, or legal advice.
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