Nifty Weekly Technical Analysis for Week 21 Nov

Nifty on WoW basis is down 5.5% with a waterfall decline.
Fundamental Factors impacting the fall
European cues and our internal cues high inflation with rising interest rates, policy jam at New Delhi, Rising fiscal deficit and current deficit and Corporate profitability under pressure had led FII to pull out money from India Equities.
The INR has been eroding its value precipitously in recent times,It has seen 14% drop in last 1 year ,most of it coming in last 3 months making it the worst performing currency in Asia.
Decline in Rupee has inflated our import bill also as India is net importer of goods with Oil having the largest portion. This deficit would need to be funded through borrowings or equity investments like FDI. This increasing deficit in turn causes worries for the FII and eventually they pull out Dollars adding pressure on INR. Thus it becomes a vicious cycle difficult to get out of.
Lets have a look on technical factor

Nifty Hourly

Nifty Hourly charts on Friday made a low of 4838 on Friday just a tad above the gap area of...

Read the full story