Market View: 8-12 OCT 2018

Filed in Market Update by on October 8, 2018

 

Week Market View: 8-12 OCT 2018
View Last week the NIFTY closed at 10316.45 registering a loss of 5.62%. It closed at almost 6 months low making a bearish candle on daily and weekly charts. The depreciating rupee, rising crude prices and the surprise move on rates by RBI led to negative sentiments all across. There are also nervous sentiments around rising bond yields and drying liquidity which is keeping the markets on its toes. However, we feel that the current correction is a very good one for investors to take positions in case they have missed on previous rallies. Per the DOW and Elliot wave theories, that’s how the markets move and a post correction rally will surely happen. In the immediate short term, a relief rally can be expected. However if the NIFTY breaks below 10300 then it could break the psychological barrier of 10000 on the charts but the chances of this happening are very low as the focus will soon shift towards July-September quarter earnings which should kick off this week. We still feel this is a good chance to take fresh positions as the valuations are still very attractive. We should be cautious off course but at the same time not lose on opportunities. Stay disciplined on all existing positions. Do not panic. All the best!

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