Market Outlook of 7th May, 2018.

Nifty continued its decline for the third day; all sectoral indices end in then red except Nifty Bank; 10800 act as a strong resistance.

Nifty index opened flat and remained under pressure throughout the session. Nifty has been making lower highs – lower lows for last 2 sessions and till it holds below 10638, weakness could be seen till 10550 and 10500 while it sustains above 10680, then the upside could continue towards 10780-10800.

India VIX moved up 2.08% to 13.12. VIX spiked after the decline of last 4 weeks and it requires a hold below 13.50 to bring positivity back to the market.

Bank Nifty outperformed the Nifty for the week as it closed positive with the gain of 1% against Nifty’s 0.69% loss. It has seen the highest daily close and has been holding its winning streak from last 6 sessions.

Now, it has to continue to hold above 25500 to extend its move towards 25750 then 26000 while supports are seen at 25250 then 25100.

This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities.

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