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MARKET OUTLOOK FOR THE WEEK: 19-09-2016

MARKET OUTLOOK FOR THE WEEK: 19-09-2016
September 19
01:44 2016

Nifty on Friday ended at 8779.85, almost down by around 1%. Weekly charts and monthly charts of Nifty and Sensex are still in the buy mode will keep the market steady in the next week despite global volatility.  Nifty has immediate supports at 8733 and 8689 and having resistances at 8851 and 8932.  In normal market conditions Nifty may not move down below the previously said levels.  Low level buying can be initiated, despite a weak opening on Monday.

Friday we saw bouts of buying on the morning trade, but after noon due to profit booking Nifty erased some of its early gains; especially in banking sector.  Banking Nifty on Friday closed at 19855 and it is having support at 19729 and 19522.  The first support is a strong support point and most probably we can expect a U turn on Banking Nifty on expectation of a possible rate cut.  PSU Banking Nifty has resistances at 3259 and 3305 and support levels are at 3120 and 3074.

 India’s trade deficit declined marginally.  The trade deficit fell 38.1%; export fell 0.3% and import fell 14.09% in August 2016 when comparing with the previous year in the same month.  Consumer price index for August 2016 slowed to 5.05% in August 2016 comparing with July 2016 consumer price index of 6.07%.  Market participants are on the view that Reserve Bank may cut lending rates in the next policy meet, if that happens then it could act as a catalyst for the markets.  Last week India’s IIP numbers came out, which was tad below expectation; it fell 2.4% in August.

Automobile, Cement, OMC, Capital Goods, and Banking stocks are good for medium to long term.

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ALEX MATHEWS

ALEX MATHEWS

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