Stock markets mostly traded rangebound in last week before a strong rally on Friday which aided a positive close on weekly basis. Rupee depreciation forced traders to book profits in this truncated week.
Bullishness to continue in markets
Nifty pharma index recorded a decent gain of 6.1 per cent. The Indian rupee slumped to a fresh record low of Rs 70.42 against the US dollar as emerging market currencies also fell notably. Retail inflation (CPI) for July 2018 came in at 4.17 per cent, well below the expectations of 4.5 per cent which is within the RBI guidance.
Core CPI was marginally down to 6.2 per cent in July 2018 lower than 6.3 per cent of the previous month. Technically, the Nifty poised to continue to be bullish as long as it sustains above the 11400 level. If it clears the previous high 11495, the next level of the target is at 11640.
The Nifty has not fallen below 11350 level since last two weeks even after many attempts. In this background, 11350-11340 zone works as critical support for the near future.
The leading indicator RSI(66.36) is making lower lows and maintain above the bullish zone of 60. Two-week consolidation breakout (above 11495 or below 11350) will give a faster move either side. As of now, the Indian stock market is not showing any significant weakness. Be positive for time being. - Hans Research Team