Monday, August 27, 2012

Nifty Outlook for 27th August 2012

Nifty Outlook  for  27th August 2012

Nifty will remain volatile on account of major local and global  events lined up for this week.On friday India's GDP data will act as a pointer to Nifty's trend for Sep 2012 .Indian markets have ignored weak fundamentals on back of liquidity.Will this liquidity flow continue or ebb down? Pointer to this question will be known by late friday in US fed's Jackson hole conference, followed by ECB Draghi's conference on saturday.Hints of QE3 by US fed and Draghi's incentives to step up and buy bonds to save Italy and Spain from high borrowing costs will keep  global liquidity buoyant which will set up  Nifty for 5600+. However any disappointment from US fed will result into profit taking.In event of minor correction,Nifty holding 5291/5262 will provide an opportunity for buy on Dips.All bets are off below 5225 level.Local factors like Coal scam,lack of reforms,GDP data will also have major impact on Nifty below 5225 level.If Coal scam blows off big time coupled with lack of policy action then bears  will go for the jugular as system is light on shorts.Today's Key support level at 5378(hourly)/5338(EOD) and key resistance level at 5425(hourly)/5466(EOD).

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