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MARKET OUTLOOK FOR THE WEEK: 19-12-2016

MARKET OUTLOOK FOR THE WEEK: 19-12-2016
December 18
08:44 2016

Nifty closed weak at 8139.45 on Friday and it is likely to remain under pressure in the days to come.  As the major technical indicators are yet to give a buy signal, we have to wait to enter in to the market at around 8125, 8005 and major support at 7948. After testing the key support market may consolidate at 7950- 8200 levels.  If nifty could manage to close above 8249 for more than 5 days then we can expect further upside but chances are remote.  Even Dow Jones is on a bullish mode, it is overbought zone.  The daily charts and weekly charts and even the monthly charts are indicating overbought situation.  Dow has support at 19659 and there are possibilities that it could test this level in the short term.   After the testing this level Dow can easily move above 20000 mark.  The S&P 500 VIX is hovering below 13 is also suggesting this.  US FED decision to increase the interest rates hurts the global equity markets and especially emerging economies.  Furthermore US FED could raise interest rates in the coming quarters can also hurt the sentiments of global equity markets and commodity markets.

Companies in the segment of exporting, oil marketing companies and oil producing companies are likely to support the market in the short term.  Banking Nifty is still to give a buy signal and it has support at 10065 and has resistance at 10373.  Sideways trends can be expected in the short term.

Last week India’s WPI came out, as expected it stood at 3.15% for the month of November as against the previous month at 3.39%.  India’s Industrial Production declined drastically at 1.9% in October comparing with the same in the last year at the same month.

Macro data’s which are expected to come in the next week are too low comparing with the previous weeks especially for US side.  Retail sales YOY, Unemployment rate, GDP YOY, Service PMI, Balance of Trade and Inflation Rate can be expected from the EU Zone.  The lone important macro data which is set to come out from India is Foreign Reserve.

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ALEX MATHEWS

ALEX MATHEWS

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