Start of October Nifty bounces back from 17100 to 17444 and settled at 17328 up by 1.32% amid the weakening rupee, mixed global sentiments, higher GST collection. Further in coming week Nifty has 3 important support levels – 17294 / 17224 / 16908. With SGX Nifty trading 250 points down on Friday, Monday we may see a gap down opening. As long as it holds 16908 level one can use buy on dips strategy to trade in market and a close above 17500 level may open the way for 17800 and above. (Remember – 17800 / 17850 zone will act as a breakout zone for Nifty). As the earnings calendar starts, more volatility may be observed.
Bank Nifty also recovered its previous week’s losses and closed at 39291 up by 1.25%. In coming week Banknifty’s important levels should be 39020 & 37998. If Bank Nifty sustains above 39760 it may test 40849 / 41729.
Lets observe the previous weeks performance.