INDIAN MARKET NIFTY OUTLOOK FOR NEXT WEEK
By Andrews Joseph
12th February 2022
1. Nifty is not able to break the ALL TIME HIGH of 18604 nor the low on 16th December 2021- 16410. and it was in consolidation phase for the past 5 months and closed in red down by 231 points ended in 17374 on friday day this week.
2. In the above chart Nifty has formed a symmetrical triangle pattern on a daily time frame as well as in hourly time frame . neither the we can see an uptrend nor a downtrend hovering around and gave solid move of more than 8000 points up and down during this consolidation phase.
3. Inflation data of US which is out on this week hits highest level in 40 years as price rise 7.5% which is worry some factor as this will lead to fed tapering sooner and increase the interest hike in march itself.
4. During the month of January 2022 FIIs sold about 41,346.35 crores whereas DIIs supported the Indian market by net purchase of 21,928 . retail buyers has also participated in buying.
5. Again Midcap and small cap stocks has started to a sell of since January this year. penny stocks are falling drastically.
6. World indices American markets such as S&P 500 , Nasdaq and Dow are in sell of mood dure to inflationary factors apart from that one of the FAANG (gang) stock facebook crashed 25% last week due to quartely result
7. Important Global events to be watched for the FED meeting on 14th February (happy valentines days) which will monitored closely across global investors and fed will have to hike the interest rates
8. Some of the factors affecting the market is geopolitical issue , US has asked his citizens to evacuate as soon as possible fearing the RUSSIA will Invade UKRAINE. Massive troops has been deployed by Russian along the border of Ukraine and war drills are conducted with Belarus by Russian troops. (Though it is unclear whether RUSSIA will invade Ukraine). French president Immauel macron met Russian president Putin to de-escalate the tensions. ( note: separate blog with will written on this stay tuned).
9.Silver(23.569$ and Gold has risen 1858.89$ sharply on 12 February 2022. while the crude oil has hit a 7 years HIGH of 94.63 yesterday i.e 11th February 2022
10. In the above chart the turning point will be 17140 for nifty which may act as crucial support for break down in coming days , weeks and months.
11. On the Upperside the target -1 will be 18027 and Target -2 will be 18355 provided if the market kept a close on higher side above 17800 on weekly time frame
12. Retail traders have to trade with strict stoploss or they can hedge their position and have to cautious before averaging .
13. FIIs are booking their profits since october last year and new retail investor are trapped by seeing a massive rally post covid crash.
NOTE:
No body can predict the market and I'm not trying to predict the market because market will go on its own way. There is a saying "Expect the unexpected".
OBSERVATION:
USDINR combined with US 10yr bond yield the RSI indicator is indicating at oversold zone .
Market not able to break the ALL THE HIGH for the past 4 months.
Market can break either way depend upon the some of the factors mentioned above.
RBI has not increased the interest rate seems to be positive . ( Still in india the inflation is still under control).
Quote for the day
" I have not failed. I've just found 10,000 ways that won't work ”
- Thomas A. Edison
Thank you
Disclaimer: The above content is only for training and educational purpose. Views may differ from one person to other person. And some information may be incorrect and the Blogger is not responsible at any point. I dont recommend anyone to trade based on the above information. Trading and investment involves huge risk. Please consult your financial advisor and iam not sebi registered advisor.
Good one. How to contact you
ReplyDeleteWill send link to my private telegram channel
DeletePlease update daily
ReplyDeletePlease update on regular basis
ReplyDelete