Market View: 19-23 SEP 2016

Filed in Market Update by on September 19, 2016
Week 19-23 Sep 2016
View Last week the markets closed at 8780 registering a loss of 1% over previous week. The NIFTY chart right now is showing indecisiveness after the close we saw on Friday. We now expect the NIFTY to consolidate after the 400 points rally we saw from August till date. The consolidation phase will gather the strength for the next rally, so in a way this phase would be important. Consolidations portray volatility, so be cautious. Consolidations also have a history to show good stock specific movements and that should interest us. This should be a good time to enter into quality stocks. We should all ignore the rumours that we are in the beginning of a bear rally. Truly that’s not what the chart suggests. Till the time we are above 8500 we have nothing to worry. Over the last couple of years there has been a lot of good policies and initiatives from the government, the implementation of which would lead to further economic growth. So we are definitely not in a bear rally. 9050-9100 will be the resistance to break for the consolidation zone. This week is likely to be lacklustre and a little volatile. We must be a little cautious. All the best!

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