Nifty 500 Inside Bulls' Trap, While NBFC Defaults’ Fear Prevails
Satendra Singh | Nov 02, 2018 04:03AM ET
On analysis of the movement of Nifty 500 Index during the last few trading sessions, I find the current reversal is just a result of hopes for better resolutions during the upcoming week not only at the international level, but at national level too. Most of the Asian equity markets have turned positive since November 1st, 2018 amid hopes for a positive outcome from the upcoming meet between the U.S. and Chinese presidents raised hopes of a thaw in trade tensions.
But fear expressed by India's Department of Economic Affairs over the significant default from large non-banking finance companies (NBFC) and housing finance companies in the next six weeks is evident enough to extend the possibilities of more downward moves in Indian equity indexes during the upcoming weeks. I find the Nifty bulls amid “Bulls’ Trapping Zone” from the levels of 10450 to10860. Any exhaustive move in Nifty Index from the current level will confirm the retreat of Nifty bulls towards the levels of 9100.
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