What will be market direction next week ?

stockguru's picture

About stockguru

Stockguru has been investing in Indian Stocks since 1990.With an MBA in finance from Pune university and more than 20 years experience in finance industry he is a well respected finance professional.

 #

Past few sessions were not very good for long traders. But I guess we all were expecting this. Market has been ignoring any negative news . There has not been any significant correction in past 4 months.

As I see in chart above nifty is trading well above its 52 week and 20  moving averages. These avg act as baseline from which stocks usually rebounds. Hence we have a support at 4845 and 4658.

Also I looked closely on volumes and definitely volumes on red bars ( low days ) are small compared to green bars ( high days ).

Globally .. commodities sold off in NYSE on negative news from Home sales. Chinese markets are still struggling. All money is finding ways to India. That includes tons of hot money that rides momentum.

Here is 3 month nifty chart and you can see we are within good range of Bolingers. Also accumulation distribution looks good. These are good sign for medium term.

Now what for short term ? What will be tomorrow or next few days  ?

In short terms ( days ) I think we have some more negative sessions ahead of us before the ride continues. There has not been any significant sell off in the market despite negative days and I am not expecting much.

All eyes are now set for corporate results. While stocks are looking expensive on good rebound anticipation, corporate india still need to prove that investors are right. Any poor showing on results can trigger big sell of.

 

Recent Comments and talks

What is AskDalal ?

AskDalal is a investment blogging portal dedicated to Indian investment community , where every blog answers a question.It may be stocks, bonds,commodity, real estate or anything else.Post your blog title  or a question, community will do research and answer the question to give you your own research report.It is 100%free , no registration is required to browse and ask questions.It's great for writers looking for article topic,and cool for investor looking for answers.

>>> faq

Top Contributors

UserPoints
suniljain10,440
admin2,990
rahul das2,460
anilmehta1,710
dipak1,540
rakeshseth1,500
himesh1,350
stockguru1,110
shah1,060
bharat_vora1,040

Become Askdalal Research Analyst

Are you an MBA (finance) students, economics students, or journalist with broad interest in stocks, investing and finance. Do you want to polish your skills before getting into job market ? Come join askdalal as Research Analyst.Email your resume to tripti.shah@askdalal.com.

If your resume is impressive you will get chance to show your talent,polish your skills and earn money along the way. At the convenience of sitting at your home computer. See rules for askdalal investment analyst.

Latest Dalal

  • rosenjack13
  • bangalore.scrap
  • bipin1987310
  • mohammed ilyas
  • mehta.a10