The week left by and observed some unification for the markets as the Nifty 50 index revised and marketed within a range but held on above its significant support levels. Nifty breached the 16,000 mark during the week but governed to halt above it with a weekly loss of around 1.06 per cent. BSE Sensex revised by 1.32 per cent and shut at 53,760 levels. We noticed some corrections in the Nifty during the week but the index has not breached its vital support levels. It has retraced its current upside move from 15180 to 16270 by 38.2 per cent and the surging trendline aid around 15800 has also not been breached.
Anticipating further from the bulls when the market opens next week, Mehul Kothari, AVP — Technical Research at Anand Rathi said, “Although the last session of the week climaxed on an optimistic note the bulls yet have a lot to catch up. The index NIFTY spot began the week with a downside gap and then retained on inching poorer to sneak below the 15900 mark. Nonetheless at the end of the week; it arranged to recoup sharply and recover the 16000 level.
The European Central Bank (ECB) policy meeting is planned for next week, which is anticipated to attend to inflation and further the Eurozone crisis. Indicating stock market onlookers and investors to continue vigilant against the ECB meeting, Divam Sharma, Founder at Green Portfolio announced, “Eurozone inflation numbers are foreseen in the coming week, with the Euro attaining parity of 1:1 with the US Dollar for the first time in two decades, and the Nord Stream 1 pipeline standing closed for supervision, the energy expenses for the continent might go on with to soar, particularly post the shutdown of key plants in the US which were huge exporters to Europe. Emphasis on renewable energy will boost multifold.”
“The consequence of the Evergrande problem in China is gradually snowballing into a huge hit on the Chinese real estate as the non-payment of mortgages increases to about 100 developers, the problem is now evolving big enough to blow the financial system of China which is standing on $6.8 Trillion of excellent mortgages from the hard-pressed developers,” told Divam Sharma of Green Portfolio.
“Indian Rupee is at a lifetime low. We are already caressed at 79.99 rupees for each dollar, and we could see the number deteriorate from here. The depreciating rupee has an extensive effect on our trade balance, inflation numbers, foreign education, foreign travel, remittance, and expansion and will be a key trigger,” announced Jitendra Upadhyay of Bonanza Portfolio.
After US inflation data climbed up to a 41-year high, all gazes are now set on the US manufacturing and service PMI data that will direct to additional volatility in the global equity markets.
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