Nifty Prediction for tomorrow 17th May 2021

Nifty Prediction for tomorrow 17th May 2021 Nifty trend sideways. Can see another pullback towards 14900. Nifty support at 13800 resistance at 15250. Nifty expected to be in a broad trading range.

Dollar Index has been moving lower and the trend still remains down. So more money being printed by FED and all that money first got into risk-on assets like stocks. Then all that money went into metals like steel, palladium, copper, and even crude oil Now, that money has started to move into food items. Across the board, you have basic food items cost rising higher. Now all this cheap money being printed is heading the market into a zone of higher inflation. I would expect to see hyperinflation sooner than most other people expect. 

Nifty Prediction for the second half of 2021

So on one hand we have reduced purchasing power due to higher medical spends by people, lesser income levels which means top-line sales are going to get hit. On the other hand, input costs for raw materials are rising very sharply. This will create pressure on companies to maintain margins. So eventually this will result in companies taking a hit on the bottom line. This simply means that EPS downgrades will happen sooner than later. And the net result of this means that the higher side movement of Nifty is going to be restricted. 

So cheap liquidity in the near term is supporting the markets from falling and headwinds and EPS downgrades are keeping the prices from running much higher. The combination of both is creating this sideways movement in Nifty.

Nifty Prediction for tomorrow

Nifty Prediction for tomorrow


Bank Nifty Prediction for tomorrow

Bank Nifty is also just drifting in a sideways range. Overall State bank of India will keep drifting and eventually should test 290 target area. When and where to short is a different ball game. On a spike towards a quality resistance area we will short sell this one.

In the near term, we can see a move higher though in Bank Nifty and some bank stocks though not much upside or momentum is expected. Indusind Bank can see decent bounce from lower levels. Some positive news can come in here.

As usual, if you are only trading on the basis of this post please use your own risk management and then only trade. Please do not over-trade and always keep your risk in check. 

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Regards,

Glen Drago

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