The tug of war between bulls and bears are likely to continue. Nifty has to continue to hold above 11,550 zones to extend its up move towards 11,620 and then towards 11,666 - 11,700 zones.
A volatile week for Indian markets but the index managed to recoup some losses and closed just below 11600 levels for the week ended September 7.
Weakness in the rupee is likely to keep markets on the edge this week which is a truncated week. Markets will remain shut on Thursday on account of Ganesh Puja.
Global clues, macroeconomic data, movement of rupee against the dollar, FPI selling and crude oil price movement will dictate the sentiments in the near term.
FPIs turn net sellers in September, pull out Rs 5,600 crore in just five trading sessions.
related news
On the economic front, India's industrial production data for July 2018 and all-India general consumer price index (CPI) inflation data for August 2018 will be declared on Wednesday.
On the macro front, two big data points came out on Friday.
India's current account deficit (CAD) as a percentage of GDP declined marginally to 2.4 percent in the April-June quarter of 2018-19 against 2.5 percent in the year-ago period, the RBI data released on September 7 showed.
The country's foreign exchange reserves fell by $1.191 billion to $400.101 billion in the week to August 31 due to a decline in foreign currency assets and gold reserves, according to RBI data.
Inflation data based on wholesale price index (WPI) for August 2018, will be announced on Friday.
The bullish bias will further get confirmed if Nifty surpasses the 11,640 resistance zone.
Big News:
Trump ups ante on China, threatens duties on nearly all its imports
US President Donald Trump warned on Friday that he is ready to slap tariffs on virtually all Chinese imports into the United States,
He has threatened duties on another $267 billion of goods on top of $200 billion in imports primed for levies in coming days.
China has threatened retaliation, which could include action against U.S. companies operating there.
Trump has already imposed 25 percent tariffs on $50 billion worth of Chinese goods
Technical View:
Nifty formed a Bearish Engulfing candle on weekly scale which suggests limited upside
A tug of war between bulls and bears are likely to continue
Nifty has to continue to hold above 11,550 zones to extend its up move towards 11,620 and then towards 11,666 - 11,700 zones
On the downside supports are seen at 11500 then 11450 zones
Three levels: 11,500, 11,620, 11,760
Max Call OI: 11,800, 12,000
Max Put OI: 11,500, 11,400
Technical Recommendations:
We spoke to Axis Securities and here’s what they have to recommend:
KPR Mill: Buy| LTP: Rs 700.25| Target: Rs 728| Stop Loss: Rs 663| Return 4%
Lupin: Buy| LTP: Rs 956.65| Target: Rs 1022| Stop Loss: Rs 915| Return 7%
Torrent Power: Buy| LTP: Rs 269.20| Target: Rs 290| Stop Loss: Rs 258| Return 7%
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