Market Next


August 28
02:06 2017

Nifty on Friday closed at 9837 in a highly volatile market condition.  Going forward the volatility is likely to continue due to various reasons including growing doubts about US Presidents ability to fulfil his economic agenda and domestic market conditions.  Nifty is likely to get support at 9747 and 9646.  If these two levels are not taken of then we can expect a minor bounce back of Nifty towards 9900 to 9958 level.  A decisive move above this level can further elevate the market towards 10000 mark, but chances are remote.  Investors should select good quality stocks for long term investment, which can be accumulated at a phased manner at every decline.

Banking Nifty the usual market supporter is likely to remain under pressure due to PSU banks Non Performing Assets.  According to RBI these banks should recapitalise at the earliest.  Bank Nifty has support at 23871 and 23617.  The lone resistance will be at 24475.

We can expect sideways trends during the next week than one sided movements, despite easing tensions between North Korea and US and China and India.  The declining VIX, both India VIX and US VIX suggest marginal uptrend to the markets

Metal counters are likely to witness limited upside.  Nifty metal index has support at 3294 and resistance at 3435. Like metal Index FMCG sector will also show some amount of consolidation and minor uptrend, FMCG index is likely to test 26000 and the index has support at 24807.

Nifty IT Index and Nifty Energy Index will give support to the Nifty at least in the first days of the week.  Phama stocks will remain subdued in the early days of the week, but later it can give firm support because the phama stocks are already entered in the over sold region.

Marco data’s like US Markit Composite PMI, Markit Service PMI, Continuing jobless claim, initial jobless claims are due next week.  Foreign Exchange Reserve data from India is also due next week.  From the European side Balance of trade, Industrial Production, ECB Draghi Speech, GDP Growth Rate, Consumer Confidence and Industrial Production will come out in the coming days.

Vardhaman, GATI, Pricol LTD, Castrol, RBL, GILLETTEE, Atlas Cycle, La Opala  etc will come out with their quarterly earning numbers.

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