Dalal Street Week Ahead | Stocks and Commodities

September 14, 2014
Time: 8.45 am

Dalal Street Week Ahead:

1. Markets traded for the whole week within a range I predicted last week.
2. Nifty touched a high of 7180 and a low of 7057, a range of less than 130 points.
3. I suggested selling 7900 Put option and 8350 Call option, both gave very good profits in one week.
4. Last week was a week of consolidation.
5. Next wekk may also be a week of consolidation with high volatility due to Fed meeting and lower IIP data.
6. On Monday, markets will react to bad IIP data with 30 to 40 points gap down.
7. Also along the way, markets will react to WPI data on Monday.
8. Japan markets are closed on Monday.
9. There are no market moving news globally.
10. On Tuesday, German Economic sentiment news is due, also Fed meeting starts.
11. On Wednesday, Inflation data from Europe and US are due. The decision of Fed meeting will be a key event to watch on Wednesday night.
12. On Thursday our markets will react to Fed news, if there is any indication of interest rate hike, then emerging markets will be down.
13. Since correction is overdue for our markets, our markets may fall more than other markets.
14. Nifty can fall by 200 to 400 points and that should be a surprise, the fall may be over a period of time, not in a single day.
15. Also on Thursday, philadelphia Manufacturing index data is due from US>
16. On Friday, there are no market moving news.
17. Monday, Tuesday and Wednesday trades will be choppy with negative bias due to IIP, Inflation data and Fed anxiety.
18. On Thursday and Friday, trde will be dominated by Fed news.
19. So whether the Fed is going to be Dovish or Hawkish will decide the market trend.
20. Nifty is likely to trade in a range of 7900 to 8250, you may have to change this range if there is any big positive or negative news from Fed.