Indian markets ended Monday’s session with gains, supported by FMCG & IT stocks. Asia, Europe and the rest of the global stock markets were in a good mood where the sentiment is boosted by the deal struck between the US and Mexico to avoid a tariff war. Weak US jobs data also raised hopes of rate cuts by the US Federal Reserve.
Nifty is still stuck in the same range even though it exhibited good intraday volatility. Both today’s and yesterdays candles are Doji formations, signifying indecision on the part of investors. Wouldn’t be a surprise if we keep meandering around this level till the budget day. But going by the technical evidence, a pre-budget rally or a sell off will come.
Today’s intraday move negated the smaller “Rising Wedge”. The Nifty also went up to the 11950 breakdown level with the opening gap but failed to sustain and pulled back to fill the gap. It rallied by the end of the day to close at a 0.44% gain for the day.
The action is more stock specific but the problem is the inability of any stock to sustain the rally for more than a few days.
The latest update on Indiabulls Housing Finance Ltd is sure to create some flutter in the market tomorrow. A plea was filed in the Supreme Court on Monday seeking legal action against Indiabulls Housing Finance Ltd., its chairman Sameer Gehlaut and directors for alleged misappropriation of Rs 98,000 crore of public money.
Trade safely, tomorrow is just another day.