The GST meet, GDP numbers and other imp. numbers will drive the coming week market: Epic Research

Mr. Mustafa Nadeem, CEO, Epic Research

Nifty forms a Hammer on the weekly chart as consolidation continues for a 9th straight week. This is by far the longest consolidation we have seen in Index in the last few years. A hammer is a reversal pattern which is characterized by a longer lower wick with a small body on the head making it look-a-like of a Hammer. The indication of this completely favors the bull. It implicates the presence of bulls at lower levels of 10600 - 10620. Now it's important to see if its market headed to a short term bounce towards 10900 - 10920 or we may see an eventual breakout.

Derivatives data suggest we may see range-bound trading between the range of 10700 - 11000 which has been the case so far for the last few months. We have observed last few expiries to be favoring the writers who would jump in to eat away the premiums while this week as well we believe the same to be the scenario.

Technically, Nifty is around its crucial 100 days SMA and 200 days SMA which is placed at 10820 - 10865 respectively. We may further see consolidation as at important levels like this plays out to be longer than expected.

In the coming week, we have a few important numbers that are very critical to market specifically when we have RBI having a neutral stance. The market will look forward for GST meet output scheduled on Sunday. The GDP Numbers for Fiscal year, the GST Quarterly numbers along with Fiscal deficit are due on 28th Feb. The important numbers such as Infrastructure output and Nikkei Market PMI numbers are also expected in the same week. We may see a rise in the underlying volatility and must be vigilant to any directional move that can be seen. With that, we also have expiry next week.

Traders are advised to be cautious. Nifty needs to break 11000 or 10600 decisively to establish a short term trend. With Primary trend undertone being bullish, we expect bulls to have an upper hand in this Tug of War.

Source : Equity Bulls

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