Nifty Prediction 15th Jan
As we had predicted in our yearly update inflation has started moving higher or rather I should put it this way inflation has moved sharply higher so though many of you will look to discount the numbers that came out yesterday saying that eventually even this will get digested and Nifty will move ahead and continue its uptrend seems a little difficult and the reason is that till a few months back RBI was cutting rates and till now has cut rates by 135 bps and that was acting as a tailwind for the markets but now the situation with rising inflation or higher than 4% inflation will change this entire scenario so in the coming RBI meeting in Feb we are predicting that RBI will change the stance from accommodative to neutral and that will no go down well with the markets.
From a near term perspective, Nifty consolidated in a sideways range between 12320-11900 spot levels mentioned and did move higher from the trading range but the breakout does not look good as there is no volume confirmation on the current breakout also other parameters such as momentum and some other factors look to be missing in the current breakout so we dont see a good trade available as of now. Our advice is not to trade until you get a good trade set up.
So in a nutshell Nifty prediction trend remains higher for now but the up move lacks volumes and looks very sluggish and corrective wave so we will have to wait for volumes, momentum and some other parameters to confirm the breakout. Keep in mind that this rally or breakout is on the back of multiple negative news flow that have been coming and this being the year of Rahu / Uranus we wont be surprised to see a sudden breakdown also.
Good trading to you!