Volatility to continue
Last week, the markets were volatile touching both sides of the range. Now, the Nifty is rangebound at 11250-11550. A big breakout of 500-600 points is likely to be seen in the next 10-15 days. Fresh buying will emerge only if the Nifty crosses 11600, which is a recent top from where the markets slipped. Below 11350, positional selling will be seen. So, trade with caution.
The markets will take cues from global events like USA’s and China’s trade war. Crude oil prices are on the rise and so are petrol prices. Hence, inflation is also likely to rise next month and RBI’s probable rate hike in its meeting scheduled for 4 October 2018, may also impact the markets especially Bank Nifty. Therefore, be cautious and take light positions till the overall sentiment improves.
In the currency market, the INR is trading in the range of 71.4/72 against the USD. A close above 72 will push it higher to 72.5-73 levels. The INR will gain strength only on a close below 71.4 against the USD. Among stocks,
Colgate-Palmolive (India) looks good above Rs.1120 for Rs.1140-1145 (SL: Rs.1111) Bata India looks good above Rs.1040 for Rs.1065-1070 (SL: Rs.1020) Jubilant Foodworks looks weak below Rs.1335 for Rs.1310-1300 (SL: Rs.1355) Reliance Industries looks weak below Rs.1260 for Rs.1230-1200 (SL: Rs.1279)