Market Next


August 16
04:16 2017

After heavy sell-off Nifty tested an intraday low at 9678 and finally on Friday closed at 9710.  Going forward Nifty is likely to fall further towards 9603 to 9546, which are the crucial support levels.  Any decisive move below these two levels can cause intensified sell-off.  The weekly charts and daily charts are giving selling indications, earlier it was in the overbought territory.  Nifty has support at 9771 and 9832.  Up trend can continue if Nifty moves above 9832.  The current geo-political tensions between China and India and North Korea and US are keeping the markets under tremors world- wide.  Global volatilities shot up on Friday, which is above 15% at present and it is likely to move up further to the northwards.  Concerns about shell companies in India are also a point of concern among investors.

Now let us check Dow Jones, it has support at 21428, if there is a sell-off below the earlier said level then we can expect heavy carnage in the US markets.  It is prudent to reduce open positions in the domestic market.  Long term investors can accumulate front line stocks at every decline in a phased manner.

In the domestic market Bank Nifty hit very badly last week especially after the quarterly earnings of SBI.  PSU banking stocks hit very badly last week.  Banking Nifty has support at 23804 and 23479.  Resistance for  the Bank Nifty is at A24202.  Banking stocks will remain under pressure some more time.  Like Banking sector Metal stocks would also likely to shed more weight after weaker than expected earnings from Hindalco.  Metal Index has support at 3126. Nifty energy sector index is also showing weakness and it has support at 12305.  Apart from the energy sector the defensive sector FMCG is also likely to show persistent weakness.  Nifty IT and Nifty Pharma sector may give minor support to the market in the next week.  But both these sectors have limited up side.

US Industrial Production data and European Consumer confidence, unemployment rate, inflation rate, GDP growth Rate and Balance of Trade data’s are due next week.  WPI inflation, balance of trade and GDP growth rate, Nikkei manufacturing PMI are also will come out next week.

Quarterly earnings of AIA Eng, Amrutanjan, AUrobindo, Coal India, Grasim, IDBI, JK tyre, MTNL, NBCC, Rolta, Tata Power, Dish TV and Pricol Ltd and the companies which will announce their quarterly earnings next week.

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