Weak global cues and stringent measures on P-notes did not allow markets to break beyond resistance last week. Out of 5 trading sessions bulls have shown strength in 3 trading session to begin with, however they did not have courage to take prices further up and lost to the bears in last 2 trading sessions of the week.
We are entering in F&O expiry week. Will this week decide the trend for next month?
Technical Overview: Last week Nifty made a high of 7940 and low of 7735 to close at 7749. That was a range of 205 points. Bulls have lost all the gains they had earned in last to last week. Weekly candle closed near low with somewhat sluggish sentiments. The good news for bulls is that the Nifty is now trading near an important support. Nifty has filled up a gap near 7738.
Supports are 7738, 7710-7700 and 7570
Resistance is near 7780, 7815 and 7866
My View: If current broad trading range is to continue, Nifty need to give strong upward pullback from current level. There is high possibility that Nifty will recover in early trading session in next week.
However If Nifty breaks below 7678, there will be next lap of fall till next support near 7570
I have enclosed the chart below to understand the levels on chart
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