Indian data on a rise. Doesn't warrant rate cut sooner; or will there be any rate cut after all ??
Another US rate hike; dot plot indicates 3 hikes next year and I consider that a bit hawkish (we gotta wait to see what next Fed chair Mr.Powell has in store and no one knows what POTUS has in store including himself). And there's US corporate tax cut which might trigger capital flight from Indian equity to US equity if Trump could implement as he proposes.
Considering all these, bulls might go on for a sabbatical. May be our Premier & Finance Minister together has to summon them back through new policies or budget. Expect a more populist budget if Gujarat election turn out to be negative for the BJP or even if they win with thin margin.
Technically, 10165 is holding for now; below that 10100/10000 is a good support. If index manages to get aid from current , manages to cut above the and nullify earlier lower high factor, next stop would be around 10490/500. From there if the mood becomes positive (naturally it should) we might continue to see new life time highs supported by fresh buying as well as short squeezing. However, in the instance of falling below 10000, Nifty will be pulled back towards 9700 which is very very crucial. A break below will technically make the index and invite more bears from torpor. So, it should be a trend changing event.
Anyway, let's not assume anything as now and see what unfolds in coming days.
Happy Trading !!