Nifty will touch level 8750

Mr. Vivek Gupta, CMT - Director Research, CapitalVia Global Research Ltd

After a marginal gain in early part of the week, Nifty Future saw some mild correction but recovered and gave flat expiry and on the last day of the week it extended gains by hitting all time high of 8668 as bulls had complete control over the bears, getting help from factors like Organization of Petroleum Exporting Countries (OPEC) refrained from reducing output which led to sharp decline in global crude oil prices which will help India in containing its fiscal deficit, current account deficit, reduce the government's fuel subsidy burden and fuel price inflation. Broad based buying was seen across the board specifically led by banking, auto and oil sector. Movement of index in near term will on consistently remain on further reform initiatives to be taken in the ongoing winter session, much awaited RBI's monetary policy next week on Tuesday and GDP Data today in evening and auto sales numbers in start of the month.

Nifty November Future hitting fresh highs gave closing at 8632.75 with the weekly gain of 140.35 points. In near term Nifty is likely to continue its uptrend with overall breadth of the market is positive but RBI's interest rate decision will be an important going forward having resistance around the levels of 8750 on the upside while immediate support around the level of 8500.

Source : Equity Bulls

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