Satendra Singh | Sep 13, 2019 16:50
On analysis of the movements of Nifty 50, in different time frames, I find that Nifty 50 showed a good bounce against all odds on September 13th, 2019; amid growing hopes on tariff trade war front, but Dollar extends losses on lingering trade war hopes as higher-yielding currencies advanced on hopes at least a temporary truce to the Sino-U.S. trade tussle.
No doubt that the Nifty 50 showed a good bounce back in an hourly chart, after taking a good support from 200 Days Moving Average, but once again found stiff resistance at the level of 11,081 and closed at 11,075; but in this process have formed a similar formation as it shown at closing bell on August 30th, 2019 which was followed by a gap-down on September 3rd, 2019.
I find that the Nifty 50 finds stiff resistance at the level of 11,081, whenever it attempts to break this level recently but could not; which result in a futile attempt here. I find that this series of futile attempts made by Nifty ensures the probabilities of a gap-down on September 16th, 2019; because the Indian economy has not seen any major change at the national level. All fundamentals which have been constantly putting bearish pressure on Nifty 50 remain the same. For watching my upcoming video on Nifty 50 and Bank Nifty, subscribe to my YouTube channel “SS Analysis”
Finally, I conclude that the India's retail inflation rate increased to a 10-month high in August but stayed below the central bank's 4% medium-term target, strengthening expectations that there will be another interest rate cut next month. The next decision from the RBI's monetary policy committee (MPC) is due on Oct. 4. I find that a rally in stock prices will run out of steam soon. It is typical buy-on-rumor-sell-on-fact trade on central bank stimulus and will be over by the Fed and the BOJ's meetings.
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Written By: Satendra Singh
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