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Last Updated : Sep 07, 2019 08:23 AM IST | Source: Moneycontrol.com

Initiate long positions on the Nifty if it closes above 11,150 level in coming week

The index has formed a Hammer candlestick pattern on the weekly charts which indicates a bullish bias and is likely to test the neckline of 11,100-11,150 zone.

Kshitij Anand @kshanand
Representative image
Representative image

One should take a bullish view on a decisive close above 11,150 zone for targets of 11,400-11,550 on the upside, Manav Chopra, Head of Research, Indiabulls Ventures Ltd, said in an interview with Moneycontrol’s Kshitij Anand.

Q) The holiday-shortened week closed on a muted note. What are your views for the coming week – any important levels to watch out for? Will Nifty be able to climb 11,000 levels?

A) The index has formed a probable inverse Head & Shoulder pattern which has its neckline placed around 11,150 levels. There will be support around the 10,850-10,800 levels which is likely to act as a cushion on the lower side in case of a decline.

Close

The index has formed a Hammer candlestick pattern on the weekly charts which indicates a bullish bias and is likely to test the neckline of 11,100-11,150 zone.

One should take a bullish view on a decisive close above 11,150 zone for targets of 11,400-11,550 on the upside.

Q) What is your call on currency? This week we saw some pullback, do you see the trend continuing in the coming week? Any levels which investors should keep in mind?

A) USDINR this week posted a 21-month high showing a strong uptrend in the recent months. However, we are now witnessing a distribution pattern indicating a loss of momentum towards the highs of 72.40(spot).

In the coming week, we expect a minor dip towards 71.2-71 levels while the upside may be restricted to 72.50 levels.

Q) Also, Gold has picked up steam in the last couple of months and is on the verge of touching 40,000. What would you advise investors to do now – time to buy or wait for cool-off? ETFs, gold funds are better or physical gold?

A) The global economic slowdown, uncertainties about US-Sino trade war & Brexit has provided the shiny metal with enough thrust to become one of the best performing asset for the year.

With the broad bullish trend intact, investors may now turn cautious ahead of the US Fed Chair Powell’s speech.

A positive outlook on the US economy may reduce the chance of rate cut in the upcoming interest rate policy decision while pushing gold lower. For the week we expect Gold to trade within a range of $1,550-$1,460 with mild negative bias.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on Sep 7, 2019 08:23 am
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