It was completely a bear trap for the last 5 trading sessions thereby Nifty has lost almost 2.5 percent in a week.
for the coming week , we might see the external factors that may bring some volatility to the Index .
MPC of RBI will meet to take necessary action on further rate cuts keeping the global trade war concerns and economic activities . And the decision is due on 7th Aug.
If we look at the weekly technical charts on Nifty, we can see there is a multi level support closer to 10800-10900 levels . Forming a upward trend-line starting from March 2016 . At 7100-7200, 8300-8400, 10000-10100 and now 10800-1900 levels on Weekly basis .
The Index may feel the pressure of current corporate scenarios and earnings estimations which are the main concerns for the Indian Markets . Apart from this, if there in any buying seen post RBI Policy , then we are almost in a sideways trend converting into Bullish sentiments post earnings season.
One must wait and watch patiently in order to start accumulating the midcaps once the carnage is over .
Nifty levels to watch : 10800- 11300
Initiate Positional Longs above 11125 ( Nifty Spot ) for a Target 11310 , Advising not to short till Nifty Spot breaks 10810 on Closing basis.
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