Nifty Future will consolidate before any more Upside Move

Nifty future had moved from its low of 4500 to high of 5600, this move was 1100 points up move in just 1 month. Stocks from infrastructure sector have doubled in this period, on charts we are seeing nifty future is likely to see some profit booking after decent rally. Momentum indicators are suggesting some slow down in current upward momentum, this slow down will result in consolidation and may cause volatility in market. Next week we have F&O expiry so markets are going to heavily consolidate, immediate support for nifty future is at 5475 level (20 periods Simple Moving Average) and next support is at 5410 level. Also aviation sector is going through bad times due to lack of policies from government of India, hence Kingfisher airlines (KFA) is seeking bailout from govt and restructuring loans from banks.

About Bhaveek Patel

Bhaveek Patel is a technical analyst and investor, his areas of interest includes stock market, forex, gold.


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