Market View: 11-16 FEB 2018

Filed in Market Update by on February 11, 2018

 

Week Market View: 11-16 FEB 2018
View Last week the NIFTY closed at 10455 registering a loss of 2.84% over previous week. In the last couple of weeks the markets have corrected around 5.5% which has very much aligned them with earnings and economic growth. The markets had run ahead of the micros and this is a sort of a breather now. The coming week we expect further corrections. The markets would react to the news that NSE, BSE and Metropolitan Stock Exchange will stop licensing their indexes and securities data to foreign exchanges. Industrial and manufacturing production data for December and CPI inflation for January will be released too. The markets would also react to the Wall Street bounce back on Friday. All of this would make the markets choppy between 10300 and 10600. If the markets are not able to break the resistance of 10600 then they would fall back to 10200. We need to remain cautious this week too. Technically, the markets have a downward bias and could test 10,000 in worst case scenario. Any upward rally will see profit booking coming in which would pull the markets back again. It is recommended to book profits at higher levels and not take any new positions. On a long term horizon the markets are bullish and the current phase should be seen as a correction in the bull rally. FY18 earnings will be better than FY17 and hence the long term story is still intact. We should show patience and discipline in the current phase which will pass by soon. All the best!

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