Brutal move may continue, Nifty has broken its 3M old trendline
As shown above, nifty has broken its three month old trend line. However, Nifty still above its bullish trendline made post COVID-19. It appears that this volatility is fueled by FII selling which help in triggering SLs for many traders. In my view, Nifty is going to touch its bullish trendline in in Nov/ December (with some pull back).
Further, all the economist/ Reserve banks are of the opinion that WPI will be going down in next 2-3 quarter as the current increase in WPI is because of disruption in supply, resulting expensive commodities. However, this will be good for overall economy as margins of the companies will increase, more saving and thereby more investments/ expending by consumers but it may be negative for the companies dealing/ producing commodities. So overall, I am very bullish on the stock market, which still can give handsome return.
Further, all the economist/ Reserve banks are of the opinion that WPI will be going down in next 2-3 quarter as the current increase in WPI is because of disruption in supply, resulting expensive commodities. However, this will be good for overall economy as margins of the companies will increase, more saving and thereby more investments/ expending by consumers but it may be negative for the companies dealing/ producing commodities. So overall, I am very bullish on the stock market, which still can give handsome return.