Trading Plan: This week welcomed Samvat 2082 with a feeling of hope and enthusiasm in a festive atmosphere. However, the initial momentum gradually slowed down. Geopolitical tensions and profit-booking dampened investor enthusiasm. Record festive sales have indicated an uptick in consumer demand in India this season. The impact of GST cut and rising household expenditure is beginning to be seen. Better than expected results for the second quarter have energized the market. Public sector banks are leading the recent rally in the market. There is now a possibility of mild consolidation in the market before the next round of bullishness.
Vinod Nair, Research Head, Geojit Investments Said that a lot of fluctuations were seen in the bullion market. Yesterday, due to the strength of the US dollar and profit-booking, gold prices witnessed their biggest single-day decline in more than a decade. Crude oil prices rose sharply after the US and EU imposed new sanctions on Russian oil companies, raising fears of a global supply shortfall and new inflation concerns. This could have a bad impact on India, as higher crude oil prices could widen the fiscal deficit and put pressure on the import bill.
He further said that investors are keeping an eye on the developments in India-US trade talks. Both sides are getting closer to finalizing the agreement. The trend of the global market will mainly depend on the interest rate decisions taken by the Fed and ECB next week, which is expected to decide the direction of the market in the near future.
Nagaraj Shetty, Senior Technical Research Analyst, HDFC Securities Says that on the weekly chart, Nifty formed a small negative candle with long upper shadows, indicating consolidation at upper levels. The overall near-term trend of Nifty remains positive, but the market is facing selling pressure on a short-term basis. In case of further weakness from here, there can be big support for Nifty around the level of 25600-25500. In such a situation, there may be opportunities to buy on dips next week. Immediate resistance for Nifty is at 25950.
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