Sunday, October 16, 2016

Weekly Review 17th October 2016

Dear All,

As they say in Russian, ‘an old friend is better than two new friends’,” Modi said in his statement after meeting visiting Russian President Vladimir Putin on the sidelines of the BRICS Summit.

Modi said India, with Putin’s backing, hoped to fast track its association with the Eurasian Economic Union Free Trade Agreement. He also announced the setting up of an investment fund of $1 billion between the National Investment and Infrastructure Fund (NIIF) and the Russia Direct Investment Fund to advance infrastructure partnership.

US unemployment claims reached a record low of 46 years. In addition, minutes of the meeting of the US Federal Reserve pointed to an imminent rate hike in December, which may spoil the mood further.

“The Fed minutes show what everyone has known for 8 weeks: officials want to get on with normalization ‘soon’. If not November, a hike looks assured by December,” said a Deutsche Bank report. “The labor market is strong, the housing market is strong, consumption is strong. Inflation and wage growth have accelerated significantly over the past year. At 2.3%, core CPI (retail) inflation now stands three ticks above the Fed’s 2% target,” the report added.

A rise in US interest rates will result in foreign funds pulling out of emerging markets like India and invest in the strengthening dollar. This would also put a pressure on the Indian currency.

Fears of a US rate hike in December coupled with the concerns of a rate cut in India in February to further depress sentiments. Bank of America Merril Lynch said that a final 25 basis point repo rate cut would be possible on February 7, “given that real policy rates are already 50 bps negative. December looks unlikely as banks will find it difficult to transmit in the busy industrial season.”

Last Week's Chinese trade data also renewed concerns over a possible yuan devaluation.

>>> Nifty Daily Chart <<<

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8570 Finally support Bulls last week also. Below 8570 - Next support @ 8450.

>>> Nifty Hourly Chart <<<

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As mentioned Friday on Whatsapp - If Price holds 8540 - Expect 8620 and 8640 on the Upper side.

>>> Bank Nifty Daily <<<

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Bank Nifty below Support line 19100 and broken the trend line also. Next Week 100 DMA must support bulls.

>>> Bank Nifty Hourly Chart <<<

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19100 may Resist and 18700 may support - Break on either side may give a reversal point.

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>>> Performance till 14th Oct, 2016 <<<

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Above performance is not a Promise or guarantee for the given Profits or Loss.Performance given based on 1 lot at a time and clients Profit differ as per the margin availability and Number of Lots taken by them. We may or may not re-enter the Calls given here hit Stop Loss, as per market movement. The charts given above are just for educational purpose only and we don't recommend any Entry / Buy or Exit / Sell. Reader must taken their own decision or consult their qualified Analyst before making any decision