Nifty Closed Below 10 DEMA (8200) For 1-st Time After Ten Trading Days Amid Negative Global Cues and Finishing Of PM's "World Business Tour" & Rajan's Warning About Market ("Things Can Go Wrong Anytime")

Meanwhile, head line April IIP data came at (-)0.8% which may be another shocker & much below median street expectations of 0.5% (MOM: 0.1%; YOY at 2.4%).

Notably, manufacturing output contracted by 3.1%, while capital goods shrank by a huge 24.9%; but electricity output remained strong and raised by 14.6%  in April'16 on YOY basis. The data might be in sharp contrast with the Q4 GDP growth of 7.9%. Now, Govt is planning to introduce a new IIP & WPI series by FY-17 to adapt more for the changing economic scenario !!.

Nifty Fut (June) closed around 8195 (down 0.41% for the day and around 0.7% lower for the week).

Looking at the technical chart, NF has to sustain over 8190 for any up move towards 8250-8295 & 8335-8405 zone for the next week.

On the downside, sustain below 8160 area, NF will fall towards 8100-8000 & 7960-7915 territory by the next few trading sessions.

On the global front as ECB launched fresh corporate bond buying ahead of scheduled fresh LTRO & Brexit referendum, bonds around the world continues to rally making record low sovereign yields (German/Japan/Swiss/US). Also, former bond king Bill Gross has already warned that NIRP/negative rate is a "supernova" that will explode someday. 

But central banks around the world may be also planning to monetize this massive Govt debt in future to avert a "dooms day" scenario in the global financial market. Thus, going ahead, volatility will be the "name of the game". 

As bond yields continue to plunge globally, EQ markets are slumping with SPF now trading around 0.75% lower just before US spot market opens.

Also, EU banks are under pressure today as US SEC is investigating DB for a possible case of inflated value of mortgage bonds to be calculated for MTM purpose (2013 case).

Back to our market, Nifty traded most of the times under selling pressure below the important level of 8250 and at one point of time suddenly surged to around 8299 for apparently no specific reason. May be there was some short covering after gap down open, but it seemed that more shorts are being added at every rise.

Also, SEBI issued stricter KYC & disclosure regime for P-Notes, which may affect the market sentiment.