International markets are on the rebound. The big Banks world wide are bringing rampant policy changes to save guard themselves against the fear of recession. In the midst of all such worries here is how Nifty fared…
NIFTY finally broke out of the consolidation range 7420-7480 and witnessed a strong up-move, closing 1.87 % higher for two major reasons: 1. Bank of Japan adopted negative interest rates, thus shocking the markets all over . 2. Good results from Yesbank, leading to a 11% higher close. Other than Yesbank, SunTv announced good results and jumped higher by 7%.
Lets take the weekly view of Nifty. On the chart we can see a a very impressive Doji pattern formed last week, today it has also been confirmed with a strong closing. This pattern has emerges right at the support trendline thus adding to the evidence.
On the global front, as we await the opening of the US market and witness its reaction to the Bank of Japan (BoJ’s) shocking policy of negative interest rates and the announcement of the US GDP number which is also due today.
The Chinese Index, Shanghai Composite also saw a positive closing, up by 3%.
If we look at the currencies, Dollar stood weaker again the rupee, that is the USDINR fell due to the strength witnessed in NIFTY but Dollar Yen was much stronger, giving a good rally, courtesy, the BoJ’s policy.
CHART OF THE DAY
Today we will look at the chart of Infosys. We had discussed Infy earlier once on our other section ‘Wow! What a Chart‘ for having taken support at the trendline and bounce back from the same. After that Infosys had entered a consolidation phase and today it has again broken out, forming what is called a ‘Flag Pattern’ . A flag pattern is formed when after a sharp up-move the prices being to consolidate in a slightly counter trend direction, and then breakout to continue in the previous direction. It is a resting phase you may say, post which the price continues its journey , at least up to the length of the ‘mast’ of the flag.
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