NSE Nifty could remain in broader range of 10300 - 11800: Mustafa Nadeem, Epic Research
Indian Markets have been facing sell-off and investors are getting in panic mode as the markets have corrected from higher levels. While long term investors need not worry about prospects of Indian market, short term investors might want to exit stocks to minimize their losses.
Comments on Indian Stocks medium term by Mr. Mustafa Nadeem, CEO, Epic Research.....
The selloff continued in markets but key indices ended off day's lows amid some recovery some stocks. The Sensex fell over 700 points to 36,694 at day's lows, tracking losses in other global markets, but ended 462 points lower, barely managing to hold on to the 37,000 levels. The broader Nifty however gave up the important support level of 11,000, ending 1.25% lower at 10,980.
The volatility is very high at the moment and we may see some reduction in that going forward. Hence at this point in time, we may see some consolidation while the bearish momentum may continue. The market has breached its all-important moving averages which are decisive for a trend. Be it 50, 100 or 200 days SMA. Nifty is below its previous swing low placed at 11050. We believe the most important support for the market is at 10900 where there it is having its long term support trendline. Breach of that may take Nifty to 10600 - 10200 while if it sustains the 10900 we may see a pullback to 11150 – 11200. We expect the next 9 months to be in a broader range of 10300 - 11800. A lot will depend on earnings and the global market. With a recent fed rate cut it is going to be a bit bumpy road ahead.