Nifty Outlook for the week 24th April to 28th April

NIFTY

The NIFTY index experienced a 1% decline this week, with significant pressure observed at the 17850 level, where it failed to breach during the week despite opening at the same high. The formation of a Bearish Engulfing Pattern on the weekly charts following a strong rally over the past three weeks suggests profit booking at higher levels.

In addition, the Relative Strength Index (RSI) for the NIFTY is currently at 56, indicating a neutral to slightly bullish sentiment in the market. However, it is important to note that the RSI is about to give a negative crossover on the daily charts, which could indicate a potential reversal in the market's short-term trend.

Additionally, the NIFTY is finding support at its downward channel breakout
levels on a weekly basis. From a technical standpoint, the market is exhibiting non-directional activity near the 200-day SMA, while also maintaining a lower top formation on intraday charts.

This scenario suggests that the market is currently facing resistance and could potentially continue to trend lower in the short term. However, a break above the 17700 level could indicate a potential uptrend, with the index moving toward the range of 17800-17825.

On the flip side, a decline below 17700 could strengthen the bearish sentiment, leading to a further drop in the market towards the range of 17550-17500 levels. Investors should be cautious and carefully monitor market trends to make informed investment decisions.