USA Inflation At High, What Impacts On Indian Market?

Friends, our market is reacting to global clues from the last few months like FIIs Selling, the Russia-Ukraine war, & now the USA Inflation rate hike. This weekend America has declared its inflation rates and CPI was hiked by 8.6%. Current rates have hit 40 years highs and that impacts on USA stock market. In the last two trading sessions, Dow Jones has lost the last 15-20 days of recovery and came again near support levels. These two days fall will impact our market.

NIFTY50: After Cup & Handle breakout Nifty touches 16700-16800 which was resistance as per option data and the index has gradually fallen from the same. The market has shown good short covering on the last weekly expiry and closed at the day high. The next day again opened gap-down due to the American market and closed at support levels of 16200. However, SGX Nifty indicating a gap-down opening at 16000 and that is the next support level. Also, 15900-15500 is the demand zone on a weekly chart and our markets are looking strong. So we can expect a bounce from this zone but we have to wait for confirmation on the charts.

BANKNIFTY: On the weekly chart, banknifty is in the Lower-Low Lower-High trend and it has corrected from the trendline resistance. On the daily chart it has closed near support levels, now we have to see will it sustain or break. If banknifty opens and closed below 34000 then we can see 33000 again that is the demand zone.

Important levels for the coming week are below

Nifty: Support:- 15800-16000 | Resistance:- 16400-16500

Bank Nifty:- Support:- 34000-33500 | Resistance:- 34500-34800

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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.