Dear patrons, over the last month or so we have witnessed a roller coaster ride in the Indian markets. The markets have been topsy turvy for close to a year now and there seems to be no reprieve from volatility on account of global economic turmoil.
Indian markets started the week on a somber note. The preceding week had seen a fall of around 2.5%. Opening couple of days saw the Nifty consolidate around the 17200 mark and it remained rangebound in the range of 17450 to 17300. Friday, however, saw a strong bout of buying and Nifty managed to cross the 17500 barrier and closed positive by more than 1.5%, closing above the crucial 200 EMA. There is a tug of war going on among DII and FII. The FIIs have been sellers for most part of the week however, the DIIs have emerged as a force to reckon with, matching FII selling with almost similar amount of buying.
The big buying figure by FIIs is on account of Rs. 15000 crore stake acquisition in 4 Adani group companies. The Indian Rupee has managed to gain some lost ground against the USD over the last week. Though not a substantial gain, INR has shown some strength.
As we can see in the above chart Nifty has completed its 5th wave correction. It looks poised for an up move towards 17800. Resistance around 17800 may be stiff and hard to overcome. If Nifty manages to close past 17825, move towards 18300 is on the cards and Nifty may sail towards it in a jiffy.
As far as BankNifty is concerned, it has managed to close above its 100 EMA. BankNifty is in its 4th up wave and is likely to move towards 42500 in this series. If and when BankNifty reaches 42500, it will be time to be cautious on it.
In the meanwhile, accumulate good quality stocks in every dip. The markets are presenting a good opportunity for short term trades to be executed.
Long term Indian markets look to be in a bull phase and investments should be rewarding. Till the time geopolitical event take center stage the markets may remain volatile and present opportunities in both directions. Traders need to be nimble footed and cautious.
Happy Investing!!!
P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.
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