Market Outlook

The sensex and nifty closed in red today. After opening in Green and seeing some positive news on dubai front finally it was inflation numbers which has spoiled the party.
Now, Nifty is facing big hurdle in crossing 5180-5200 levels. It's been in the range for almost two months and still not able to cross all time highs. More of it's like psycological pressure.

Does market look tired? or It's just because there's no supply of paper from FII ?
Well, for now it looks like market is bit tired and it's not having conviction to cross 5180 in near future. In near future it look like we'll be having some selling pressure when nifty touches 5180-5200 range. Lots of call writing is happening at 5200, which suggest it's going to tuff for nifty to cross 5200 in december.

We may see some news on Rate Hike, as inflation is heading upwards. Mainly it's food inflation which needs to be controlled.

Even after all this things and hurdles, I believe nifty will take out this intermediate highs.
Few points related to this argument.
- As we know lot of people are sitting on cash who missed rally.
- Fresh equity allocation would be there from FII and DII. Likely to see lot of money inflows.
- U.S. is stil having rates near to "ZERO", which will keep on adding money into the system.
- Domestic consumption-growth story of india.

For short term we need to be really stock specific while investing in market.

Just wait for my next article, where I'll give you some trading idea for short term to medium term.

Happy Investing !!