Market Next


August 28
02:13 2017

Nifty is likely to consolidate in the days to come before moving up further towards 10100.  Nifty has made strong base at 9758 and 9707. A sharp move below these two supports can cause further more sell-off but chances are remote. The immediate resistance for Nifty lies at 9904.The India VIX which tracks the market sentiments has also declined and it is the clear indication that more stability can be attained when comparing with the previous weeks.  S&P 500 VIX which tracks the US market sentiments also suggests that markets may scale up further despite geo-political tensions.  As the market range is limited it is prudent to carry less open positions in your speculative portfolios.  FII are booking profits in the cash markets and they are accumulating futures positions.  DII continuously supported the markets in last few weeks.

Nifty Bank has immediate resistance at 24498 and has support at 23901 and 23743, Governments latest proposal to merge PSU small cap banks with large cap banks will further help the PSU Banks to move up from the current level.  Many of the business houses with huge debt in their portfolios are restructuring their debts is positive for the PSU banks.  If the banking index move up further then we can expect sharp rebound on Nifty.  The hammered down Pharma index is also started getting support from the lower levels is positive.  Pharma Nifty Index has support at 8481 and has resistance at 9018.  Like Pharma index Nifty IT index is also showing positive reversal trends, IT index has short term resistance at 10694.  Monthly Charts of the IT index is also showing positive reversal trends after heavy sell-off.

Nifty FMCG and Nifty Auto index are having limited upside potentials.  So it is prudent to stay sidelines in the short term from these sectors.

US GDP Growth rate, Continuing jobless claims, Initial jobless claims, EIA Crude oil stock change, Non farm pay roll data are due next week.  From India, Infrastructure output, GDP Growth rate, Nikkei Manufacturing PMI, Foreign Exchange reserve data will be available in the next week.  From the EURO side Consumer Confidence, GDP Growth rate, Business Confidence, Inflation rate, Industrial Production and Unemployment rates will come out next week.

Major companies are already come out with quarterly earnings and earnings season is going to come to an end very soon.  Next week mid-cap companies like 8K Mills, HMT, Minda Ind will be report their quarterly earnings in the days to come.  Parliament session especially after the riots in Haryana and Punjab will be in focus next week.  Global market outlook and Dollar-Rupee movements are also will have upper hand on markets next week.

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