Technically speaking cash Nifty50 is going to build a head & shoulder pattern. It’s not fully built yet. Last shoulder is still in building phase. Whether a full-fledged pattern will form or not depend on the price movement in few coming days. Its possible that, price will take a positive break out. And in that case it might go up to 3900 or higher. If price trend forms an H & S pattern then 3600 or lower levels are on the card.
No positive impetus is around. This week two important news are due on Friday. Inflation data and Infosys result. They can leave potential impact.
On the other side, money market is easing. Call rate is going back to normal levels. Sudden appreciation in INR might get corrected. Some FIIs, mainly portfolio investors, who were earlier not taking money out, may choose to liquidate some part and buy dollar. If equity market continues poor performance than this can a good option, at least for the time being, for foreign portfolio investors.
This week, not much writing from my side. Expect, more posts through the week.
You can also visit me at: dipanksaha.instablogs.com
I do write there regularly.
