Sunday, 25 March 2018

Sensex, Nifty turn weak and volatile on global trade war fears

The markets last week open lower and on the back of negative news flows both domestically and internationally triggered downside and finally ended the week on Friday on negative note, down almost 2 percent for the week. More downside in Indian equity market is not ruled out since the oil price firming up, some political uncertainty on fore and a trade war, a protection trade policy announced by US against China is expected to lead markets of more downside, although the domestic news flows in the US were good with one of the lowest unemployment rate and rise in interest rate thus giving hope for more demand , could lead to a recovery in Global markets but now needs to be seen how it unfolds, forthcoming March quarterly result will be looked upon closely and would further act as a trigger for the markets to take a directional course. Investor’s at this juncture should be wise enough to be at least 15 to 20 percent in cash to be deployed after stability emerges in the market.

Technical– Technically the markets look weak and sceptic, with poor internals. In the near-term markets are likely to see 9800 and followed by 9700 in the near term. The valuation will get attractive and buying will see a range bound trade between 9700 and 10300, the paramount resistance is placed at 10700 and a close beyond that markets will get bottomed out, however a close below 9600 the market will see swift downside for the Nifty to test 9100 to 9200. On the higher side a close above 10700 will see new high.

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