Weekly update:
Nifty- Week on week there has been negligible change although volatility was quite high during this expiry week. The positives we can draw from the week gone by is that we had a weekly close above 5700 after quite some time(last seen in April 2011) and have shown resilience compared to the global markets. We must not forget the fact that from the 4770 lows we have rallied 20 % and to give back 2-3 % from these levels would only be a healthy sign. On Friday, we once again had the retest of the upper channel before giving up some of the gains( refer chart). Nifty at the moment looks overbought and is bound to correct and consolidate in the coming days. Nifty will find support at the dotted lines marked in the chart.
Global Market- Much awaited correction finally came about in the global markets and SP500 came close to 1425( target posted on 15th sept) before bouncing back, only to close lower for the second consecutive week. I expect this correction/consolidation to continue for some more time before we have a final dash at higher levels.
Shanghai Composite- IMO it looks like the multi year bear market in the Chinese market has come to a sooner than expected end. In the days/weeks ahead SSE will once again make an attempt to go below 2000 only to reverse and rally higher getting into a multi month/year bull phase.
USD/INR- The week gone by was extremely good for our currency which gained substantially. However, IMO, the rally should have come to an end with the lows made on Friday and we are about to see a trend reversal which can be quite agile taking people by surprise.
Have a fantastic weekend!
Nifty- Week on week there has been negligible change although volatility was quite high during this expiry week. The positives we can draw from the week gone by is that we had a weekly close above 5700 after quite some time(last seen in April 2011) and have shown resilience compared to the global markets. We must not forget the fact that from the 4770 lows we have rallied 20 % and to give back 2-3 % from these levels would only be a healthy sign. On Friday, we once again had the retest of the upper channel before giving up some of the gains( refer chart). Nifty at the moment looks overbought and is bound to correct and consolidate in the coming days. Nifty will find support at the dotted lines marked in the chart.
Global Market- Much awaited correction finally came about in the global markets and SP500 came close to 1425( target posted on 15th sept) before bouncing back, only to close lower for the second consecutive week. I expect this correction/consolidation to continue for some more time before we have a final dash at higher levels.
Shanghai Composite- IMO it looks like the multi year bear market in the Chinese market has come to a sooner than expected end. In the days/weeks ahead SSE will once again make an attempt to go below 2000 only to reverse and rally higher getting into a multi month/year bull phase.
USD/INR- The week gone by was extremely good for our currency which gained substantially. However, IMO, the rally should have come to an end with the lows made on Friday and we are about to see a trend reversal which can be quite agile taking people by surprise.
Have a fantastic weekend!
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