Nifty March Future closes with weekly loss of 300.65 points

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

Market in first half of the week traded sideways but selling pressure intensified on last day of the week as key benchmark indices extended its previous losses to close at lowest level in more than four weeks. Broad based profit booking was seen in most of the sectors while selective buying was seen in Pharma and FMCG stocks.

Meanwhile, the Rajya Sabha yesterday, 12 March 2015, passed the Insurance Laws (Amendment) Bill, 2015, paving the way for increase in the limit for foreign investment in the insurance sector to 49% from 26%. On the macro front, data released by the government on 12 March 2015, showed that the rate of inflation based on the combined consumer price index (CPI) accelerated to 5.37% in February 2015 compared with revised rate of 5.11% increase in January 2015 and industrial production rose 2.6% in January 2015, compared with revised growth of 1.7% recorded in December 2014.

In overseas markets, European and U.S market edged higher while Asian markets were mixed. A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy is scheduled on 17th-18thMarch 2015.

Movement of index in near term will depend on reforms to be announced by the government. Nifty March Future gave closing at with the weekly loss of 300.65 points. In near term it is likely to remain volatile and expected to trade within a broad range of 8850 - 8400 for the time being having resistance at 8850, while with the breach of its immediate support level of 8650, more correction can be expected till 8430 level which is next important support.

Source : Equity Bulls

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