Market View: 11-15 SEP 2017

Filed in Abundance by on September 11, 2017
Week Market View: 11-15 SEP 2017
View Last week the NIFTY closed at 9934.80 registering a loss of 0.40% over previous week. The NIFTY has entered into a consolidation channel of 9750-10100 and is waiting for a breakout now. We would need a major trigger for NIFTY to break out at either side of the range 9800-9950. The current sluggishness is on account of escalating geopolitical issues especially the North Korea story and hurricane in the US. Hence overall the global markets have suffered. This is also coupled with weak domestic triggers and hence we are lacking fresh triggers now. We will continue to see stock specific movement as long as NIFTY is consolidating. Consolidation is an excellent phase to park your money in quality stocks. After a breakout it would be start of another rally for the next 12 months or so. The only immediate worry for us this week is that there has been a hanging man pattern formation formed on the charts the last week. This may not necessarily be a trend reversal as NIFTY has been moving sideways for quite some time. Had we seen this on an uptrend it would have been alarming. However, we must still observe caution this week and see how things span. A break out on the lower side from now could lead to a correction. Let’s wait and watch for this week. All the best!

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