Metals, Banks and IT may see further dip due to profit booking : Epic Research

Mr. Mustafa Nadeem, CEO, Epic Research for your consideration:

Nifty ends down post geo-political cues which were negative as unrest in Middle-east countries sent jitters to investors triggering profit booking and a decline. Nifty ended down more than half a percent while bank nifty was major loser losing almost 1 percent.

Nifty started the week on a positive note breaching the all time highs to set a new one at 9273.9 with positive global cues and domestic cues with higher inflow of funds from both FII and DII. a bullish double top breakout also confirmed the uptrend thought a Geo-political unrest with US attacking Syria and post RBI rate change in reverse repo kept investors on toes. An increase in cost of fund and RBI's clear vision to reduce and focus on inflation was seen as message.

As we ended the week Nifty made a bearish candlestick pattern of shooting star this week which is a caution sign for bulls as a shooting star, bearish, is a reversal indicator indicating end of a trend and reversal where bears take charge provided further confirmation. In coming week we are cautious and there is a sign of alert as if nifty sustained the 9150 - 9100 level then its a sideways momentum else we slide below these numbers then a slide to 8950 - 8900 is very much evident.

Metals, Banks and IT may see further dip due to profit booking though a short term rebound is seen in defensive play like FMCG and Pharma.

Source : Equity Bulls

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