We@wealthcreatures had given profit booking call around 11700 & had clearly told that we expect limited upside of 11790/890 max & Nifty made a Top of 11760.
In last 9 months.we had analyzed Nifty correctly all the 3 times
1.> 11100 To 9951 — Gave profit booking call@11100
2.> 9951 To 11760 — Told limited downside from sub 10000 levels
3.> 11760 To 11268 Till date — Gave profit booking call around 10750 with upside capped.
Currently Nifty spot Trading at 11279 we expect a small bounce from current levels Which can take Nifty to 11350/11390 Levels & than can see pressure again in Nifty .
For bulls to back in action nifty needs to close above 11500 levels.
In recent down fall select midcaps have outperformed as we had stated earlier.
Investor should start adding quality midcap & smallcap where growth is visible as it can outperform & Pharma & IT can continue to do well.one can start adding quality Large cap in SIP if anyone looking beyond 12 months.
👉 factors which are pulling the market down:
Rising Crude Oil :
The top most reason to worry is rising crude oil prices as India imports more than 80% To 85% of its oil requirement.
So any rise in crude along with falling rupee has direct impact on trade deficit of our country.
Trade War :
Another key reason for correction in equity market is ongoing trade war between world’s largest economies — US and China.
Rupee Depreciation :
The currency depreciated 74 paise on Monday and another 46 paise on Tuesday to end at record closing low of 72.98.
PSU Banks :
The government on Monday announced merger of Bank of Baroda, Vijaya Bank and Dena Bank as a part of reforms to solve banking crisis. But the market did not receive it well.
All stocks under Nifty PSU Bank index were under pressure and index itself fell 5.4%
The Nifty50 continued its downward thrust and broke the crucial support of 11333 and went near its corrective swing low of 11,250 which was made in August.
The index hit an intraday low of 11,268, before signing off the session with a strong bearish candle for second day in a row.
Where is Nifty Headed Now :
Currently Nifty has very strong support at 11111 & 11000 Levels.We dont feel Nifty can correct more from Sub 11000 levels.Even in wrote case scenario we expect Nifty to correct max till 10800. levels.
Only If Rupee Breaches 75 & Brent crude crosses 85$ than there can be further fall in Nifty which we would review later.
Disclaimer – All View expressed are for study & Educational purpose only.Consult your financial advisor before investing.