Dear patrons, we are witness to one of the most enthralling periods in our stock markets. Amid chaos globally on economic front India is emerging as a shining star and hope for the World. Indian stock markets are part of this resurgence, and we believe we are poised for a much more in time to come.
In a truncated news heavy week markets started a bit slow and couldn't decide direction. Important numbers like IIP, CPI were to be announced locally as well as globally. Inflation dropped to a 3 year low in the US, bolstering hope for a earlier than expected and higher than expected rate cut from the Federal Reserve. Other economic data also suggests that the World's largest economy is trying to recover. Last week the US markets surged more than 5% whereas the Japanese markets saw a rise of a whopping 9%. Our own markets were very subdued at the start of the week but returned from the Independence holiday and had a stellar rally ending a not so good week at mid-week session to a decent week at the end.
Falling crude oil prices augur well for the Indian markets along with robust corporate earnings and strong retail participation. We expect the markets to continue momentum next week amid global rally.
Let's have a look at technicals and try to figure out what lies in store for the coming week.
Nifty found support around 24000 levels and reversed sharply Friday to close above 24500. Nifty may face resistance around 24600-24700 levels and strong support around 24000. Close above 24700 may lead Nifty towards 25000 and above. Setor specific action is likely to continue in the markets with certain sectors outperforming the Index. Certain Mid and Small cap stocks are also likely to outperform the Indices.
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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