NIFTY 50 has quickly risen about 3.5% in the past week, just shy of our target of 21078 as stated in the last weekly analysis, with the triumphant election results and the RBI monetary policy keeping the interest rates unchanged, the markets are now poised to show higher levels.

Extending the existing Fibonacci Retracement series, one can expect levels of 22462 in the coming weeks, albiet caution is to excercised, as NIFTY 50 now looks to be in an overbought zone.

On the downside 20300-20500 is going to act as a very strong demand zone, whose breach can take the Index to 19530, which seems highly unlikely, barring exceptional events. One can look to participate in the ongoing rally on the retest of 20300-20500.

The 500 point range of 20500-21000 can be utilized on intraday basis to act as a congestion zone.

On the events tab, Unemployment data for UK and Inflation data for the USA is on the cards, along with the FED Interest rate decision on the 14th, which is going to be crucial for the market. Keep an eye out for high impact events as they can be decisive in confirmation or reversals of market trend.

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