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- Nifty may remain in the trading range of 15,700 to 16,000 points
- Buying strategy should be adopted on every fall in gold
- Due to delta variant, there is a trend of weakness in crude
NSE Nifty futures can remain in the trading range of 15,700 to 16,000 points next week depending on the trades of the market. If Nifty breaks this range upwards, then it will be seen moving towards 16,200 point. If the downward pressure builds up, Nifty will first get support at 15,800 points. If Nifty falls below this level, then buying support can be found at 15,750 points.
India VIX fell by 9.58%
The Volatility Index i.e. India VIX fell sharply by 9.58% this week. The decline in volatility after the recent rally is laying the groundwork for the next bullish move. If we look at the US markets, which guide the markets around the world, the volatility is likely to continue there. There volatility index CBOE VIX jumped 14.03% this week.
U.S. markets may remain volatile
The Dow Jones, the key index of the US stock market, weakened 0.52% on a weekly basis. After crossing the 35,000 level, it declined sharply after profit-booking on Friday. In this, a pattern of higher high is being formed for the last four weeks, but investors fear that rising inflation may weaken the prospects of economic recovery for some time.
Selling FII, Buying DII
Foreign institutional investors (FIIs) sold for most of the week. They sold shares worth Rs 2,667 crore, but were bought by domestic institutional investors (DIIs). DII bought shares worth Rs 3,233 crore this week.
Keep buying gold on the downside
The price of gold rose 0.33% this week. In this, a pattern of higher high is being formed for three weeks. Gold price may see improvement this month. Amidst the record rally in the stock market, there may be pressure on it to stay in a limited range. Investors should adopt a strategy to keep buying on the downside. Silver fell by 1.25%.
Slippery will increase in the price of crude
If we talk about crude oil, then it weakened by 3.38% on a weekly basis. This happened when a bullish higher high pattern was forming for the past seven weeks. There is a weakness in crude as there is a possibility of negative impact on its supply due to increase in cases of delta variant infection.
(Chandan Tapadia – Derivatives & Technical Research Head, Shivangi Sarda – Quantitative Analyst, Motilal Oswal)