A massive gap-down opening on Wednesday to test the sub-8,100 level on the Nifty50 has done justice to the recent cautious stance on the market.
"With a cautious stance from Donald Trump along with an already dovish Federal Reserve, the pace of rate hikes is likely to be tepid in the coming years."
Nifty50 has immediate hurdle near the 8,480 level and a decisive crossover above the same level might trigger an upward move towards 8,600 and 8,620 levels.
"Improving fundamentals of the country is always a good for the markets. We believe the latest reforms are positive for the markets"
Total Put open interest of 48.88 lakh contracts stood at strike price 8,200, which will act as a crucial base for the market in the November series, followed by 8,400, which saw accumulation of 42.54 lakh contracts, while strike price 8,000 had 42.25 lakh contracts in open interest.
This pattern is usually formed in an uptrend and is treated as a reversal pattern. Investors should remain cautious even when the trend remains strong.
CLSA said Trump’s win is perceived to be a relief for domestic pharma companies, because his policies towards generics are not yet known.
No doubt that the work done by government will be appreciated by the electorate. Market will certainly look forward to continuity of economic policies post 2019.
It is a positive move for the economy and the financial markets. The move clearly suggests that the government wants to curb the illegal money in circulation.
The Nifty50 reclaimed its crucial psychological level of 8,550 supported by gains in realty, power, metals, consumer durables, banking and autos stocks.
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