Chinese GDP data, Why Nifty future will trade lower this week

We are predicting that nifty future is going to trade lower this week, here is the main reason behind our analysis. On Friday, Chinese real GDP data is due to be released, previously this number was 9.2% but as last financial year was full of slowdown and global worries we are expecting this number to be around 8.4% or even 8%. This will be a huge gap for market expectation and hence we will be seeing global selling due to this, from which Indian markets cannot escape, Hence Nifty future will be trading lower this week. Lower GDP numbers are not only limited to stock markets, it will have impact on commodities such as oil, gold, silver and natural gas. We may see huge volatility in currencies major like EURUSD, GBPUSD, AUDUSD, USDJPY, USDCHF and USDCAD.

How You Should Trade:

Indian traders are advised to enter short positions on every intraday pullback, however depending on trader’s risk one can even go long on nifty put options. We are not declaring targets right now as markets may move sideways for some time before Q4 results come in. You can refer to our guide on choosing correct strike price for nifty option.