Markets ended lower for the third straight week after foreign funds continued to press sales in equities while slump in commodities prices led to a sell-off in global markets. Further, sluggish September industrial output and rise in October consumer price inflation also dampened investor sentiment.
Industrial output grew at a slower-than-expected pace of 3.6% in September, dampened by a slower expansion in the mining sector. Further, the retail inflation climbed to a four-month high of 5% in October as food prices escalated on supply deficiency in pulses. Consumer price index based inflation stood at 4.41% in September 2015.
Foreign funds remained net sellers after robust US jobs data raised prospects of a rate hike by the US Fed. Foreign institutional investors were net sellers in equities to the tune of Rs 713 crore on Friday, as per NSDL data. During the first two weeks of November FIIs were net sellers in equities worth Rs 2,505 crore.
Meanwhile, global index provider MSCI at its semi-annual index review on Thursday announced the inclusion of Cadila Healthcare, Maruti Suzuki, Ashok Leyland and Tata Motors to its MSCI India index and removed DLF and Oil India. The changes are effective from November 30, 2015.
Surprisingly, defensive sectors such as IT, pharma and FMCG also witnessed selling pressure with pharma stocks losing the most after weak earnings from Sun Pharma and Dr Reddy's said it has received a warning letter from the US Food and Drug Administration (FDA) over quality control issues at three of its manufacturing facilities.
>>> Nifty Daily Chart <<<
>>> Click the chart to see on full screen <<<
Above daily chart shows how the Price are mirrored with previous such movements like support and resistance. Hence next week We can expect Price to take support near 7730 or 7723, In such a case, Expect a good relief rally.
>>> Nifty Hourly Chart <<<
>>> Click the chart to see on full screen <<<
May be, Nifty trying to form a Head and Shoulder. In such a case, Price may try to get support near 7730,7710 or 7690. If holds these support, Expect a bounce back to form the right shoulder. Hope the above chart and strategy gives you a clear idea of whats next on nifty.
>>> Bank Nifty Hourly Chart <<<
>>> Click the chart to see on full screen <<<
Just like Nifty - Bank Nifty also - may move up to form its right shoulder for H&S. Price need to break out of the channel for test the resistance as shown on chart.
>>> Performance till 13th Nov, 2015 <<<
>>> Click the image to see on full screen <<<
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