Nifty Plunges To 11400 As India’s Treasury Yield Curves Flatten


Nifty cracked under selling pressure and dropped below 11400 today as India’s treasury yield curves flattened and spurred uncertainty in the market. The benchmark index slipped 150 points from the day’s high of 11543 approx as the 10-year treasury and 5-year treasury yields flattened to converge around 8.11% in today’s session. A flat yield curve is a sign that the economy is likely to overheat in the in the near term and adversely impact long-term growth prospects. Nifty is likely to face stiff resistance around the daily mid-Bollinger band (11545 approx) in the days ahead.

Stocks Under The Scanner
In today’s trade Yes Bank shares rose 2.99%, while Tata Motors shares rose 2.60%. Infratel shares dropped 4.28% in the course of the day’s trade.



The Outlook for 6th September 2018
Nifty Daily Chart Levels
In today’s trading, Nifty plunged 150 points from the day’s high of 11543 after a flattish yield curve triggered uncertainty in the market. The 10-year and 5-year treasury yields converged around 8.11% and pushed the benchmark index below 11400 towards the last hour of the day’s trade. Nifty closed around 11476 approx and is likely to face stiff resistance around the daily mid-Bollinger band (11545 approx). If Nifty breaks and trades below today’s low 11390 approx, the nearest downside target for the index is around the 50 DMA ( 11200 approx). However if Nifty trades above the 5 DMA (11600 approx) it will scale up till the 5 DEMA high (11650 approx).

Nifty Hourly Chart Levels
In the hourly session, Nifty closed below the 5 DEMA high (11476 approx). The index is likely to face stiff resistance around the hourly mid-Bollinger band (11545 approx). The nearest downside for the index in the hourly timeframe is around the hourly lower-Bollinger band (11385 approx). However if Nifty trades above the 34 HMA (11600 approx), it will move up to the 50 HMA (11640 approx).





Nifty Large & Mid Cap Stocks




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Nifty cracked under selling pressure and dropped below 11400 today as India’s treasury yield curves flattened and spurred uncertainty in the market. The benchmark index slipped 150 points from the day’s high of 11543 approx as the 10-year treasury and 5-year treasury yields flattened to converge around 8.11% in today’s session. A flat yield curve is a sign that the economy is likely to overheat in the in the near term and adversely impact long-term growth prospects. Nifty is likely to face stiff resistance around the daily mid-Bollinger band (11545 approx) in the days ahead.

Stocks Under The Scanner
In today’s trade Yes Bank shares rose 2.99%, while Tata Motors shares rose 2.60%. Infratel shares dropped 4.28% in the course of the day’s trade.



The Outlook for 6th September 2018
Nifty Daily Chart Levels
In today’s trading, Nifty plunged 150 points from the day’s high of 11543 after a flattish yield curve triggered uncertainty in the market. The 10-year and 5-year treasury yields converged around 8.11% and pushed the benchmark index below 11400 towards the last hour of the day’s trade. Nifty closed around 11476 approx and is likely to face stiff resistance around the daily mid-Bollinger band (11545 approx). If Nifty breaks and trades below today’s low 11390 approx, the nearest downside target for the index is around the 50 DMA ( 11200 approx). However if Nifty trades above the 5 DMA (11600 approx) it will scale up till the 5 DEMA high (11650 approx).

Nifty Hourly Chart Levels
In the hourly session, Nifty closed below the 5 DEMA high (11476 approx). The index is likely to face stiff resistance around the hourly mid-Bollinger band (11545 approx). The nearest downside for the index in the hourly timeframe is around the hourly lower-Bollinger band (11385 approx). However if Nifty trades above the 34 HMA (11600 approx), it will move up to the 50 HMA (11640 approx).





Nifty Large & Mid Cap Stocks




 
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