Market View: 23-27 MAY 2016

Filed in Market Update by on May 23, 2016
Week Market View: 23-27 MAY 2016
Market This Week Last week the NIFTY closed at 7749.70 registering a loss of 0.83% over previous week. The consolidation phase of NIFTY is getting predictable and the volatility is leading to profit bookings every time NIFTY reaches the higher end of the consolidation channel, pulling the NIFTY down again. The FII exposure too has reduced. Hence this is not one of the best phases to be a part of the markets. The month of June will be full of events from where NIFTY is likely to take clues. The FED meet on interest rates and also the brexit meetings will be watched closely by the markets. Any inaction from them will results in short term market rallies. Good monsoon and earnings are also likely to lift NIFTY further. The current reforms on the Mauritius treaty, P-note have been applauded by the markets. For now let’s be inactive and follow the wait and watch approach. The current NIFTY charts shows a lot of weakness. This week will be volatile on account of May derivative expiry. We must observe caution and all low risk taking investors should be on the side-lines while the NIFTY trades between the ranges of 7650-8000. All the best!

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