As China ordered the US to shut its consulate in Chengdu in retaliation for being advised to close its consulate in Houston beginning this week, because of this International markets additionally retreated. In the coming week, many markets join with Reliance Industries and they will announce their earnings.
For a recent Spherical of COVID-19 help, US Senate Republicans are anticipated to unveil their proposal. Even though expectations are low for any surprises Fed coverage makers will meet subsequent week. Besides US-China tension a sudden raise in COVID-19 circumstances over the previous 6 weeks have to lead to some analysts turning cautious. Flaring US-China relations and a continued rise in virus circumstances, the market is anticipated to consolidate for a few days. Traders have to proceed with their defensive portfolio strategy given the excessive valuation and keep inventory in a particular motion. Merchants are advised to remain cautious. We should be optimistic and stay hopeful so long as we are buying and selling above this swing low and anticipate the market to offer breakout in an upward path. End of July month contracts combine with the ongoing earnings season and would keep the volatility high. The prominent names such as Bharti, Airtel, Marathi, Reliance Industries, Kotak Bank, Tech Mahindra, IOC, and SBI with several others will announce their numbers during this week. Updates relating to COVID-19 and global cues will also be on the participant’s radar. In the present week, the participation is largely limited, because of the gradual higher inching if benchmark. Now Nifty has reached closer to the major hurdle of 11,350. At the same time, we are following global indices and the prevailing momentum might derail due to any correction in US markets. We are familiar with such types of situations in the past wherein the benchmark was led by index majors, but hardly spared stock when it declines. During such situations, it became difficult for the participants for navigating.
As per the weekly time frame chart, a long bull candle of hanging man type pattern was formed. Nifty formed an unfilled opening weekly gap with this candle. This is a rare formation and on the last two previous occasions such gaps have been filled by intra week decline thus in the next week, there is a possibility of profit booking. Nifty is range-bound with a positive bias, as it is placed at the hurdle of 11250 by the beginning of next week there is a possibility of a minor downward correction. In the next one-two week, the sustainable move above 11250-11300 levels could pull Nifty towards 11550-11600.
