Since December 2, the Indian indices qhas fallen every trading day barring one. From the start of the month, it’s down by 1.8 percent and today has also seen it open in the red although at 12.30 pm, it had retraced from losses to neutral territory. But extend the comparison out to a few months and this fall becomes trivial. From its level as of September 29, the indices are still up by a solid 10 percent. It was in very narrow range today. It's all depends on West.. How their markets behave. That too is a result of the central bank hiking rates, making debt returns more attractive. Banks are chasing deposits and your bank relationship manager (RM) may have called and sold FDs to you saying rates have gone higher. Bond market having plenty of money as higher fixed returns are available right now. Indian public mentality is to safe guard the future as India has no social security like western countries. Inflow in mutual fund also down during last two months.
Inflation is a major concern to all countries and all central banks hiked interest rates but scale of inflation not gone down as per steps taken away.
All these effects leads to consolidation zone, few days back we all were expecting 19000 mark and today we are rushing towards 18000 level.
The Nifty stepped into a short term consolidation phase in the last week. As a result, it opened gap down today . On the downside, the bulls moved in to offer support as the index inched towards the short term support of 18300, which is 78.6% retracement of the recent up move.
On the other hand, recovery for the day was restricted near 18500. Overall structure shows that the Nifty can have a short term consolidation in the range of 18300-18650. The Bank Nifty, on the flip side, is maintaining its positive trajectory. More clarity will emerge post the US Fed meeting, which would determine the trend in the near term.
At every rise is being sold off, bull tries to support but gradually market depreciates...
No sudden fall expected but no jump is possible as of now. Signing off for the day 💐