Nifty outlook: Small Bearish candle shows indecisiveness, be ready to buy on declines
By Yogesh Mehta
During the week gone by, the Nifty50 touched a seven-month high at 8,992 but ended 0.46 per cent down at 8,897 on profit taking and unwinding of positions during the later part of the week ahead of Fed Reserve Chair Janet Yellen’s speech on Friday.
Reliance Industries again put up a stellar performance for the week, as the stock crossed a seven-year high Rs 1,287 and ended at Rs 1,258 after Reliance Jio’s first analyst meet.
All states agreed on GST rollout from July 1, 2017. In sharp contrast to market consensus, India’s GDP grew 7 per cent during the December quarter on a shift from parallel unorganised economy to the organised segment following the demonetization drive. With no major global event lined up, the market trend may show caution ahead of the outcome of UP elections next week, which may set the tone for market direction.
Technical Outlook: The occurrence of a Small Bearish candle on the weekly chart indicates indecisiveness in the market. The 8,820-8,760 zone is likely to act as a major support for the Nifty50 while above 8,920 level, the index could extend its upmove towards 9,000 and 9,119, levels respectively. We would like to have buy-on-dips approach for the next week till Nifty holds the 8,820 level.
(Yogesh Mehta is Vice-President for Equity Advisory at Motilal Oswal Securities. Views expressed in this article are his own and do not represent those of ETMarkets.com. Investors are requested to consult their financial advisers before taking any position based on these observations.)
During the week gone by, the Nifty50 touched a seven-month high at 8,992 but ended 0.46 per cent down at 8,897 on profit taking and unwinding of positions during the later part of the week ahead of Fed Reserve Chair Janet Yellen’s speech on Friday.
Reliance Industries again put up a stellar performance for the week, as the stock crossed a seven-year high Rs 1,287 and ended at Rs 1,258 after Reliance Jio’s first analyst meet.
All states agreed on GST rollout from July 1, 2017. In sharp contrast to market consensus, India’s GDP grew 7 per cent during the December quarter on a shift from parallel unorganised economy to the organised segment following the demonetization drive. With no major global event lined up, the market trend may show caution ahead of the outcome of UP elections next week, which may set the tone for market direction.
Technical Outlook: The occurrence of a Small Bearish candle on the weekly chart indicates indecisiveness in the market. The 8,820-8,760 zone is likely to act as a major support for the Nifty50 while above 8,920 level, the index could extend its upmove towards 9,000 and 9,119, levels respectively. We would like to have buy-on-dips approach for the next week till Nifty holds the 8,820 level.
(Yogesh Mehta is Vice-President for Equity Advisory at Motilal Oswal Securities. Views expressed in this article are his own and do not represent those of ETMarkets.com. Investors are requested to consult their financial advisers before taking any position based on these observations.)
