Weekly Market Outlook - Rahul Sharma, Senior Research Analyst, Equity99

"The possibility of Trump's impeachment is suddenly real according to media reports, this could pose biggest threat to the global markets. As Trump told Fox News. "I will tell you what, if I ever got impeached, I think the market would crash.

Apart from global clues, macroeconomic data will dictate trend in the near term.On the economic front, the government will announce data on second quarter gross domestic product (GDP) on Friday, 31 August 2018. However, markets will continue to remain volatile as traders will roll-over their positions in the F&O segment from August 2018 series to September 2018 series. The August 2018 F&O contracts expire on Thursday.

Nifty has formed two 'hanging-man' and a 'doji' pattern, indicating an early sign of reversal. Going forward, if Nifty cracks below the 'hanging-man'pattern low of 11540, which is also a crucial support, it is likely to drag Nifty lower towards the 11450 levels.

Apart from this, there is also a divergence seen on the relative strength index, which is another sign that the momentum may just start to fade away further in the short term. So even if we may not see a price correction, markets are likely to enter into consolidation phase. On the positive side, if the Nifty ignores these two patterns, then the next hurdle is seen around the 11640-11660 levels".

Source : Equity Bulls

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