Nifty to consolidate, resistance seen at 8800-8823: CLSA

Laurence Balanco, CLSA said against the already bearish profiles in commodities and emerging markets the brokerage has further evidence of global equity markets forming a distributive top with the MSCI World index featuring a head-and shoulders top above the March/February lows.

He feels global markets are still vulnerable to a clean out via lower levels before they are ready to resume the longer term uptrend in earnest.

According to him, there is little change to the Nifty's outlook as price action continues to stabilise with the rally off the June 12 bullish price/momentum divergence low, working its way towards next chart resistance at the 8,800-8,823 area.

This advance is likely to morph into a sideways consolidation pattern, he said.