Nifty may be entering a period of consolidation

Market Forecast - Mr. Vivek Gupta, CMT - Director Research, CapitalVia Global Research Limited.

Nifty Future begun the week with the gap up opening above its previous life time high of 8200 level as bulls had complete control over the bears and continued its rally upward throughout the week making all time high, getting help from factors like FIIs continuous buying, Brent crude declined to its lowest in four years. Some profit booking was seen in the market at higher levels like metals sector on the last day of the week were as buying was seen in pharma sector and private banks.

In overseas markets, Asian stocks rose after a drop in American jobless claims bolstered optimism in the world's largest economy before a US government report on employment. S&P 500 and Dow Jones Industrial Average climbing to record levels after European Central Bank president Mario Draghi hinted at monetary stimulus of as much as euro 1 trillion for eurozone economy.

Movement of index in near term will depend on upcoming IIP, CPI & WPI data expected to be announced later in the week, and results of important companies of second quarter earnings.

Nifty November Future gave all time high closing at 8391.80 with the marginal weekly gain of 39.45 points.

Last week nifty opened gap up above level of 8200 and managed to sustain above it and continued its northward direction. In near term it may be entering a period of consolidation and expected to trade in 8300 - 8460 range with positive bias having immediate support around the level of 8200.

Source : Equity Bulls

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