Nifty50 snaps eight-day winning streak, but long-term outlook positive

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Indian equity markets closed on a mixed note on September 12, with the Nifty50 index snapping its eight-day winning streak. The market is expected to consolidate in the coming sessions, with support at 19,800-19,900 and resistance at 20,100.

The Nifty50 index closed at 19,993, down 3 points (-0.01%) on the National Stock Exchange (NSE), while the Sensex closed at 67,221, up 94 points (0.14%) on the BSE. The broader markets also saw a mixed trend, with the Nifty Midcap 100 index falling 3% and the Nifty Smallcap 100 index falling 4%.

Technical analysts believe that the Nifty50 index is due for a consolidation after a sharp rally in the last seven trading sessions. The range of consolidation is likely to be 20,100 – 19,800.

Here are some of the key takeaways from the market today:

  • The Nifty50 index closed below the 200-day moving average, which is a bearish sign.
  • The market breadth was negative, with 9 shares declining for every rising share.
  • Foreign institutional investors (FIIs) sold shares worth Rs 1,047.19 crore, while domestic institutional investors (DIIs) bought Rs 259.48 crore worth of stocks.
  • The volatility index, India VIX, rose 1.69% to 17.74.

Here are some of the factors that could shape the market in the coming sessions:

  • The outcome of the US Federal Reserve’s meeting on September 14-15.
  • The release of key economic data, such as the IIP and CPI inflation data.
  • The movement of crude oil prices.
  • The performance of global markets.

Investors should focus on stocks with strong fundamentals and good technicals. They should also avoid overtrading and take profits on time.

In addition to the above, here are some other points that I would like to add:

  • The Nifty50 index has been in a strong uptrend since the beginning of this year, and it is likely to continue to rise in the long term. However, it is also possible that the market could consolidate in the near term before resuming its uptrend.
  • Investors should keep an eye on the global markets, as any negative developments there could impact the Indian market.
  • They should also monitor the movement of crude oil prices, as a rise in oil prices could put pressure on the Indian economy and the stock market.

Overall, the market is expected to remain volatile in the coming sessions, but the long-term outlook is positive. Investors should focus on stocks with good fundamentals and technicals, and they should avoid overtrading.


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