Markets action for the week ahead

Markets action for the week ahead

The market witnessed consolidation throughout the week ended September 18 and closed on a flat note amid mixed global cues and lingering India-China border issue.

IT and pharma stocks hogged the limelight by gaining 6-9 percent during the week, but selling in banking & financials and FMCG shares weighed on the sentiment.

The BSE Sensex closed 8.73 points lower at 38,845.82, while the Nifty50 gained 40.50 points at 11,504.95, whereas the broader markets regained ground by outperforming frontline indices. The Nifty Midcap index climbed 3.8 percent and Smallcap rose 6 percent.

On a longer time frame, Nifty is the way towards making a new high, can we call this as the beginning of the biggest bull market? I am not sure, we have to wait for the confirmation. The structure looks positive as the MidCap index is supporting to the over all markets.

On a weekly time frame, Nifty is way above its trendline support 11200, till it holds, we are buyers on every dip.

BankNifty, though there was stronger selling pressure, it held on to its key support levels. The sector is not supportive for the Nifty to move, but the bigger picture is Reliance and Infy, the heavy weights are in a stronger bullish trend. When the heavy weights are in bullish zones, we see some bigger picture on the Index for sure.

The Dollar Index is on werge of a breakdown , the recent close suggesting there is some more fall towards 72.5 which is a good sign for Pharma and IT. When these two counters move, then its obviously the Index should move up.

US-Dollar Index is weakening, which in turn gives an input for Indian currency to become stronger.

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