weekly closing below 25000 is not a good sign for Nifty. Weekly closing below 25000 is not a good sign for Nifty. Thus turning our short term outlook a little negative. Medium to long term outlook is still positive with a chance of further consolidation and correction.
If by chance there is a macro event in the Middle East at this particular junction the chances of further consolidation or a 3 to 5% fall is also a clear and present. If there will be recovery it has to be next week or perhaps mid week. Another bout of missile or similar attack can bring volatility in Crude, USD and Gold. This can effect our market negatively. There is also a another stimulus package in line by China for revival of its economy. Already FIIs have migrated enmass to China. The saving grace has been DIIs buying every dip. If DIIs will come in selling mode, Retail can also sell enmass in panic.
This post is not to create panic of any kind in investors. Fundamentals of Indian markets are strong. Reliance result is expected next week. That can be a turning point for good in the market if the results are good and there is no escalation in the middle east. The warning is given here so that you can place stop losses / trailing stop losses in a proper place.
Supports for Nifty are at: 24804, 24416, 23818 and 22990. Below 22990 it will be bear territory. In such a scenario bears can drag the market further down to 21989 or 21197. Corrections are a part of progress cycle as they get PE ratios at an investible / attractive levels.
Resistances for Nifty are at: 25026, 25426 and 25755 before Nifty gains 26K levels again.
A lot depends on macro factors now and result of Reliance next week. Status Quo in Middle East, de-escalation on war front and good Reliance result can burst all bear efforts and can turn the market positive again.
Disclaimer: The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock. We do not guarantee any success in highly volatile market or otherwise. Stock market investment is subject to market risks which include global and regional risks. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message.
