Last week – review:
Indian market started the trading week on weak note following US Fed chair Jerome Powell speech at Jackson Hole. Monday’s weak closing was later on recovered by failed to reach level seen last Friday.
Yet another week with same narrative of recession fear in US & Europe and tight monitory policy by central banks globally. Bulls & Bears continue its tug-of-war as Indian indices mostly ended flat with Banknifty gaining over 1% on weekly basis and VIX closed below 20.
Approach on Technical: Last week Monday’s weakness was bought from lower end. Surprising rally on Tuesday’s got sold into following holiday on Wednesday. Broadly Indices continue to trade in range.
We are expecting clear and decisive move this week which could give break out from Nifty range of 17200 – 17800 level and Banknifty from 38500 – 39700 level. We expect follow through move of 2% – 3% on either side once break-out from range happens.
Equichain Wealth Advisors: Opinion & View
Indian market continues to trade in narrow range and currently whole narrative is around what US Fed will do on 21-Sep-22 & ECB on 8-Sep-22.
After a sharp rally from 17-Jul-22 to 18-Aug-22 on narrative of US Fed managing soft landing has changed after US Fed chair Jerome Powell speech at Jackson Hole Symposium.