Nifty and Bank Nifty
Nifty50 recently touched a life time high of 10000 but couldn’t sustain the level and plummeted to the level of 9685.55, but regained momentum and rose for three consecutive weeks and closed flat in the recent week ended on 9934.80 against last close of 9974.40.
Bank Nifty traded with negative momentum but settled slightly up at 24370.80 against last close of 24434.
Factors which will play important role in giving direction to the nifty and bank nifty will be consequences’ of ongoing geo political tensions between US and North Korea coupled with trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar.
USD/INR is trading below 10 DMA of 64.1287, and is trading at a level of 63.9375, INR is expected to appreciate against green bucks and may touch the level of 63.7450, in coming days. If INR act in the same way, it will boost the economy thus providing cushion to the Nifty.
IIP for July is expected to release in coming week on 12th September for the month of July, after the market hours. In June 2017, IIP contracted by 0.1% which is lowest since June2013. Along with IIP, CPI for august will also announced, which was reported at 2.36% in July against 1.46% in June. Headline inflation reading will announce on 14th September, which rose to 1.88% compare to 0.9% in June.
Nifty50: Nifty is seen hovering at a level of 9946.20. It is expected to trade with positive momentum in the coming session; however, investor must remain cautious and look for the economic data releases and worldwide scenarios. However, looking at the technical, Nifty is already moving above 10DMA and it may further surge to the level of 10082 in coming week.
Bank Nifty is trading at a level of 24368 and it’s trading above the level of24363, which is 10DMA and if it continues to trade at this level, then bank nifty may surge to the level of 24695.
State bank of India
State bank of India continued to plunge for second consecutive week and closed down to the level of 271.80 against last week close of 277.85. However we expect SBIN, to trade in green region as SBI, India’s largest lender is planning to raise $3 billion in the country’s biggest overseas green-bond issue. Further providing boost to the news is the nod from internal authority of SBI and approval from a global adjudicating authority on green bonds.
Technically, SBI has made “Hammer Pattern” in daily chart and has given a confirmation in chart and prices may surge to the level of 292.10 in the coming week.