Market Next


August 15
02:16 2016

Nifty ended on Friday at 8672 down around 11 point from the previous week. The undercurrent of the market is still positive, despite weak momentum.  Investors are entering into the markets at every dip.  Nifty has immediate resistances at 8700 and 8728.  If these two levels have been taken off then we could see nifty moving towards 8841.  Strong support zones are at 8612 and 8538.  On Friday we saw minor short covering on Nifty, and the trend can continue next week also, so it is prudent to stay long on Nifty.

 Most of the PSU banks stocks prices are already factored the NPA etc., and some of the stocks are already entered in the oversold region also can give fresh buying interest.  NSE PSU Banking Nifty has scope for further appreciation towards 3055.  If Nifty manages to cross the major hurdle of 8700 mark, then it needs to get support from the banking sector. The Banking Nifty has supports at 18671 and 18502.  It has resistances at 19159 and 19561.  If Nifty could breach 8700 mark then Banking Nifty will move above19159.

 On Friday Retail inflation number came out, which surged to 6.07% in July, which is above the RBI’s comfort zone of 5%.  IIP numbers exceeds the market expectation, IIP grew 2.1% because moderate growth in mining and electricity sectors.  Food inflation rose to 8.35% in July against 7.79 in June. On Friday US Bureau of the census said that the retail sales were unchanged in July on a month on month basis.  Weak retail sales data put pressure on dollar, which further can lift crude oil prices, and gold prices.

During the RBI policy meeting RBI kept interest rate unchanged, but confirmed that there will be enough liquidity in the system.  RBI retained growth projection for 2016-17 at 7.6%.  On Friday investors lighted up their positions ahead of long week end due to Independence Day.  Some of the short positions were also closed out in the Banking space.

On the final lap of the quarterly earnings, companies like Just dial, OCL, Power Grid, Philip Carbon, Radico, TCI, TVS Srichakra, Hind Copper, Gillette and India Cement will come out with numbers.

On the global macro front US continuing jobless claims and US initial jobless claims are expected next week. From the EURO zone data’s like Inflation, Balance of Trade and unemployment rate and WPI Inflation, WPI Food Inflation, WPI Fuel Inflation are also due.




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