Looooonnnnng Weekend!!!! Investors were cashing out money from market to have enough liquidity to gift their sisters tomorrow…On that occasion we saw some profit booking on long position and market close at 5073 down 65 points. US and Europe markets ended up positively but our markets couldn’t support their rally. US banks and European banks have given a many interview suggesting that they are liquid rich and they won’t get bankrupt so that was positive blow to markets. US employment data were declared and they were positive for markets. On other hand rumors of france societe generale bank to be bankrupt holds fall. Many research house and bank official has given interviews saying that they are on enough liquid position to face this turmoil. PNB Paribas had the same rumor but they are also safe on liquidity side. Europe markets were boosting on such safe news but this happiness is not gonna last for too long. Today IIP data in India were realized which was up to 8.8% against 5.5% last month and beyond expectation of 5.7%. Top gainer was Capital Goods sector which was at 37.7% against 3.7% while mining was top loser at 0.69% against around 6%. Data was positive for the markets but because of the 3 days holiday people didnt wanna keep overnight position and so they squared off many longs. TATA motors results were out yesterday posting a flat result due to market loss at Europe and US of JLR. They expect its sales to hit next quarter due to this turmoil in US and Europe which is 80% market for its JLR. TATA steel posted good number in last trading hours but due to overall bearish mood stock couldn’t pick up today. Indias export jumped to 81% but this won’t last for long as said by official. Technically speaking market is in oversold zone with unfilled gap at 5230. Today we witness a bearish engulfing on Daily chart. NIFTY is expected to be range bound till this expiry. Rather invest in gold on dips.
NIFTY levels for 16th August:-