Nifty has been under selling pressure in the last few weeks on the back of the results of the US Elections and the demonetisation drive announced by the Government. Technically, prices are now trading near long term support levels of 200 DEMA of 8131. The level of 7900/8000 is a very strong support level which we expect to hold in the coming weeks. Banks are now flush with funds due to cash deposits and there is a very strong possibility of RBI cutting interest rates in the next policy meeting in December 1st Week. It is very likely that Nifty may bounce to 8300/8400 levels on the back of short covering with Banking stocks leading the way. Chart is posted for educational purposes and is not a recommendation to buy or sell. Individuals must trade according to their risk appetite/ financial capacity after consulting their respective financial advisers.
|NIFTY NEAR LONG TERM SUPPORT LEVEL.|