Market View: 16-20 MAY 2016

Filed in Market Update by on May 16, 2016
Week Market View: 16-20 MAY 2016
Market This Week Last week the NIFTY closed at 7815 registering a loss of 1% over previous week. The NIFTY is back to the same levels from where a breakout was seen. Historically it has been observed that after a breakout, the NIFTY rallies, corrects back to the same levels and then rallies from there on. Let’s wait and watch if that holds true this time around as well. The chances of NIFTY rallying are high as the industries that were not performing have shown good earnings this season. The overall fourth quarter earnings have been good and also the monsoon is expected to be above average. A good monsoon could just revive the economy and the NIFTY might just perform well taking clues from it. For now NIFTY is range bound between 7650 and 8000. Volatility will continue to rule in this range though we would see stock specific movements. We must observe caution and all low risk taking investors should be on the side-lines while the NIFTY trades between the range of 7650-8000. All the best!

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