Nifty closed the week yesterday at 18,534. The direction of Nifty at the current stage is not very clear. On the weekly chart, Nifty is giving a topping out signal, which means downside till 18K can come in the coming weeks within June. On the daily chart, Nifty is giving a mixed signal, with uptrend clearly intact, but with regular topping out signals.
Key levels for the coming week:
Nifty will become bullish above 18,630.
Nifty will become bearish below 18,460.
Traders should keep watching Bank Nifty and Reliance, which are likely to lead any further Nifty rally.
Bank Nifty made a new lifetime high this week at 44,498 but closed the week in red at 43,938. A new lifetime high by Bank Nifty is a positive sign for Indian market, but it also means India markets are nearly topping out and risk-reward ratio on the long side is rapidly reducing.