Nifty ends flattish for third consecutive week

Weekly market outlook by Mr.Mustafa Nadeem, CEO, Epic Research

Nifty ends flattish for the third consecutive week as the range bound trading continues in the market. This is the third week we have seen a rangebound session in broader indices with consolidation across sectors except for defensive sectors like IT.

Global financial markets reacted to federal reserve rate hike program and being aggressive in 2018 as to increase the rates. Major global indices fell from recent highs on the back of profit booking while it spread to European and Asian indices as well. Asian markets were largely down on the back of profit booking at higher levels.

The above scenario kept a tab on the bulls with any rise which was seen in Nifty above 10600. Nifty failed to breach the range in its third attempt since February first week. Price action also suggests a nightmare for directional players since we are still in a range that was set in the first week of February. Bank Nifty also followed the steps with a range of 25600 - 24900 while Nifty between 10650 - 10300.

PSU Banking Index was worst hit slicing almost 2% in last 1 month.

Lower than average rollovers in March series also suggest a weaker momentum since major sectors depicted the lower rollover statistics.

Any short covering rally in Nifty should be above 10650 n closing basis while below that we may continue to trade in the range.

Source : Equity Bulls

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