|Market This Week
||Last week the NIFTY closed at 8299 registering a loss of 2.6% over last week. There was a lot of weakness in the markets. This is a warning bell for us in the short term as the immediate support level of 8300 has been broken. This can be attributed primarily to fears of a slowdown in China and their decision to devalue yuan, depreciating rupee, falling crude, impending decision by FED to raise interest rates etc. This current weakness has led to panic among FII’s and that would lead them to redeem from emerging markets (including India). This could drag NIFTY a bit and in worst case it could hit 7900-8000. This is the lower point of our broad consolidation channel. All the global indices are showing good support amidst the turmoil and hence we don’t have to press the panic button yet. If NIFTY touches 7900-8000, then we expect a pullback rally soon. Any fall below 7900-8000 will be a no investment zone for us till the time a bottom out happens and the dust settles. However, we do not expect NIFTY to break 7900-8000. This week marks the end of the August derivative series. Too many events happening and hence NIFTY is likely to be volatile. Let’s stay away from the markets for this week and celebrate the upcoming festive events with friends and family. Our bull run is very much intact and FII’s would sooner or later return to India since there is no other growth story apart from ours. Global scenarios will make our markets volatile in the short term but that’s something which NIFTY should easily factor in and continue moving up. All the best!