Global cues were largely positive with major world Indices trading at Month’s high while Crucial index such as S&P500 surpassed the 200 Days MA. It is a sigh of relief for bulls though we need to see if its able to sustain the same.
The Domestic markets absorbed the lower inflation numbers at 2.61%. This certainly comes in line and improves the sentiment that RBI may keep the monetary policy neutral going forward. The Trade deficit saw a surprise with numbers coming at 14.73B.
Technically, A bearish belt hold; a bearish candlestick formation on weekly charts, while a Hammer pattern on the daily chart is now sending mixed signals for bulls and bears. This clarifies the fact that we are not seeing any directional trend in the, a bullish signal. This is also in line with the trending strength indicators that are yet to signal any kind of trend that is in motion or developed. It is way below the levels which suggest, strongly or moderately, that a trend is in place.
We see this as a trading range for markets and Market may see oscillating between the range of 10600 – 10900. This implies the bulls may utilize lower levels while bears may instill fear at higher levels. Traders need to be cautious as any directional trade may be false and hence utilize the trading range extremes.
In the coming week, there is no Data on the domestic front. We may be looking crucially at the movement of Crude oil, USD INR and how global markets are behaving especially when S&P500 is flirting with 200 days MA.
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