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Saturday, September 24, 2022

Nifty may remain under a pressure next week. Key levels and what are a technicals suggest

Nifty may remain under a pressure next week. Key levels and what are a technicals suggest

Stock market outlook: US GDP and unemployment numbers will be a important triggers are a next week

It was the second consecutive week of a decline for the Indian equity market, followed by a long period of a outperformance. We were decoupled from the global markets for the last many days, but now we are a witnessing some recoupling with the global markets as the dollar index is at a multiyear high of a 113 and the Rupee at a record low of a 81. FII has also started selling in a Indian equity markets, which is a why we are seeing selling pressure in a large-cap stocks. The 75-basis point hike with the hawkish commentary by the US Fed spooked the sentiments of a global markets. Global markets are a fearing a recession in the US and a Europe, while inflation is a still a concern.

Global cues are a expected to the dominate this week as well, but RBI policy and a September F&O expiry will be a lead to the volatility in our market. US GDP and a unemployment numbers will be a important. If we look at a F&O data the short exposure of a FII s in the index future has been a jumped to a 80% which means sentiments are a weak but the market is a hedged. We are heading into expiry weak on a weaker note as the Nifty slipped below the put base of  a 17500 where 17000 is the next base.

Technically, Nifty witnessed closing below 50-DMA with a breakdown of a bearish head and a shoulder formation that may lead to the further weakness. On the downside, 17150 is an a immediate support level while a 200-DMA of a 17000 is a sacrosanct support level. On the upside, 20-DMA of a 17700 is a critical hurdle.

The leader of the rally, Bank Nifty witnessed the breakdown of a up-sloping channel formation with the closing below 20-DMA. On the downside, 38750 will be the next important support level while are a 40250 will be the critical hurdle on the upside.

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