Monday, September 7, 2015

Nifty: Outlook weakens further

Thought for the day
"I am not afraid of storms for I am learning how to sail my ship."
-Louisa May Alcott (American, 1832-1888)
Word for the day
Coincident (adj)
Happening at the same time.
(Source: Dictionary.com)
Malice towards none
The people who knew the former president Dr. Kalam, please tell me - How Kalam Saheb's soul would have reacted to his name being dragged in street level controversy?

Nifty: Outlook weakens further

India’s benchmark equity indices sank to their lowest level in 14 months on Friday and are staring at a volatile week ahead as well.
On weekly chart, Nifty has perhaps given worst closing since January 2008.
Nifty not only undid the entire recovery from low 7667 recorded last week and closed lower than the low of last week, but also did not make any attempt to test the gap created on Monday.
The market has gained good momentum - volumes are higher and volatility is rising. Though there are no sign of capitulation as yet, but the consistently negative market breadth suggests that the move towards large cap has begun. This is usually often a sign of poor market expectations.
The option data is also suggesting an extremely cautious market. The activity in 7000 and 6500 Nifty put options has gained currency last week.
At present Nifty is trading close to its minor support level of 7640. But there no buying opportunity. If Nifty fails to trade above 7975 in next 10 trading sessions, it would be a major signal to aggressively short Indian equities for a certain target of 7450 and eventual target of 6860.
Buying opportunities may emerge only below 7130 Nifty level.
 

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