Dear patrons, the Indian bourses had pretty good time last week, with benchmark indices clocking more than 1% gains amidst steady news flow and robust global markets. Midcap index also showed some strength gaining ground lost at the start of the week.
Globally two major economies namely Japan and the UK are in a slowdown, however markets in these countries are performing very well. The Nikkei is at an all-time high, while the FTSE is also near its high. The US markets slumped at the start of the week after inflation eased a bit but not up to the expectations of the markets. Inflation remaining stubborn is bad news for the markets as it may lead the Fed to maintain status quo for a longer period of time, thus slowing down growth of the World's largest economy.
Indian markets have broken out of a range over last week. Broader range for Nifty remained in the band of 21500-21800, Nifty broke out of this range last week and managed to sustain above 21900 comfortably. Coming week action may shift to BankNifty with crucial HDFCBANK meet.
Let us try to figure out what lies in store for Nifty and BankNifty for the coming week.
Nifty managed to close above crucial resistance of 21900. It looks set for an up move towards new All Time High and further higher. 22200-22300 should act as resistance and support is placed around 21850. Till the time Nifty stays above 21850 it remains "Buy-On-Dips".
BankNifty also looks set for further up move. Resistance for BankNifty is placed around 47300-47400 levels. Support lies around 45900-45800 level. HDFCBANK analyst meet may act as a definitive factor for any move in the BankNifty for short time. Volatile move on either side can not be ruled out on Monday.
Traders may look to buy good quality stocks in every dip.
“Rule number one: Don’t lose money. Rule number two: Don’t forget rule number one.” ~ Warren Buffett
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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