Manufacturing Output and CPI data to add some more action in market : Epic Research

Mr. Mustafa Nadeem, CEO, Epic Research

Nifty ends down on the back of pressure at higher levels despite a positive open and cues. Indices tracked the cues from global markets and Asian markets which opened higher for the day. A higher opening we observed wasn't able to sustain the higher levels. The levels of Nifty which were crucial on the upside is now been placed at 10300 since European markets opened the day on a negative note.

The RSI on a short-term time frame which was reversing from oversold zone tested a resistance at 50 levels which gave bears an opportunity to weigh more on the short term trend towards their favor. We expect the range to continue and once we breach lower support established at 200 Days SMA at 10150 levels, if taken out, then we may see further bearish momentum building up. Investors and Traders should utilize any pullback to exit the position while riding the bearish momentum for a medium-term look favorable strategy.

On The Fundamentals Side, We expect next week to add some more action due to slew number of data that are coming in. The industrial production data which has been on rise since Last October is showing signs of revival in the underlying economy. It was at 7.1 in January as compared to 8.8 in November while it is expected to be at 6.7 - 7.1 in the coming week and any dent here will spill the fears of hangover effect of policies implemented.

With that all eyes will be on Manufacturing Output and CPI data. CPI data has been crucial for bonds market and its effect on Indian equity markets since last 6 month and it was at 5.07% as compared to above 5.2 levels. So that needs to be accounted for as well. These data will add more action since any deviation than what is expected on street will pull a full trigger for the Bears.

Source : Equity Bulls

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