Market View: 14-18 NOV 2016

Filed in Market Update by on November 15, 2016
Week Market View: 14-18 NOV 2016
View Last week the NIFTY closed at 8296.30 registering a loss of 1.63 over the previous week. Note that it also made a low of 8000 last week. We had predicted this in our earlier market view that can be found here So what next? Is the demonetisation move good enough? Well yes! It could be termed as the biggest and the boldest development since independence. In the short term it will have some negative impacts like low consumption, disruption in trade and industries etc. which in turn will negatively impact the markets. However, it’s going to benefit the nation in the long run. To keep it simple, money is flowing from homes to banks. This will lead to lower interest rates which will boost demand and the industries. Inflation will come down in the short term. It will lead to better tax compliance. The money would be used for the development of new projects etc. The effects of this move will take a while to show but they will be certain. These effects will lead to a new rally for our stock markets in the coming times. However, in the short term our support band of 8500 has been taken off. There is panic all around which could pull the markets down further. All eyes would also be set on how the US policy shapes up under Donald Trump. Let’s things settle down for now. We should just wait and watch. You are advised to stay away from the markets for now. Keep going through our weekly market views for the next directions. All the best!

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