Nifty is at a crucial level, multiple possibility both side!! Hello everyone,
Lets try to understand the following:
Global Scenario:
- Interest rate hike on the card;
- QE is ending;
- Tapper is in plan;
- Earnings are not as expected;
- Demand getting slow;
- Uncertainty Russia US over Ukraine;
- KSA and Yemen issue; and
- Many of growth stocks in US are at 52W low; and
- - (Minus) 4.1 World GDP
Indian Scenario:
- Reliance shows exception results;
- IT disappointed;
- Banking/ Insurance/ Realty doing fine;
- Budget is on the cards. Further, it is expected great expending by the GOI in projects to boost economy;
- GOI to push Make in India;
- FII selling; and
- DII buying (SIP and Retail participants investing).
So as you can read above, things are not so easy to conclude fundamentally whether the market resume its downtrend or make some positive move in next week. It is pertinent to note that US stock indexes are beaten down heavily (as mentioned above) whereas Indian markets were relative done fine.
Speaking Technically, it appears that market would start uptrend and touch 18000/300 levels and thereafter possibility of profit booking and more down levels. If Nifty crosses 18300 then inverted H&S pattern is formed, which is a bullish pattern, but it is difficult to say in this global scenario, whether Indian market can outshine them?. It has happened in past when global market was in downtrend and Indian market making ATH.
However, if Nifty break 16600 levels and give a close, then we may see more low levels and possibility to retest its flag breakout and start uptrend. or pass through it as a fake breakout. This position can be very scary and big basket selling is possible. Hence, it is very important to be careful in such kind of market to save your capital.
Better plan your trade with SL and wait patiently to capture the best moment to invest in order to maximize the profit.
- An investment idea for long term;
- Not SEBI registered, just shared my view for discussion purposes;
- Trade with proper caution, the profit and loss both are yours; and
- If possible, discuss with professional before you trade.
