Nifty Technical Outlook: Market Will Likely To Resume Its Regular Rhythm Now

The NIFTY had one of its most bearish weeks in recent times last week, with all the drama surrounding the Karnataka Assembly Elections resulting in massive flip-flops and wild intraday swings. To make matters worse, crude 'barrelled' towards the $80-mark, spelling woes on the fiscal front.

Given that the index has seen a flattish opening this week, its quite likely that the BJP loss was factored into the 2 per cent correction that took place last week, and no further pain can be expected on that account.

From a technical standpoint, the middle Bollinger Band still stands as a strong interim support (10,500 or thereabouts) and we're likely to see the index staying above this level for the next few weeks, until it hits the next strong point of resistance, which is 11,000.

With Karnataka out of the way, the markets will likely resume their regular rhythm now and trend upwards towards the 11,000-mark over the next few weeks. Any upside beyond those levels is extremely unlikely, to say the least.