Nifty April Future gave closing at 8338.70 with weekly net loss of 300.15 points

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

Nifty Future start from the week continued to fall and extend its previous week losses as high volatility was witnessed during the intraday; to close at lowest level in more than two week. Market breadth indicating the overall health of the market was negative. Broad based selling was seen across the board led by IT sectors, cement sectors, pharma and telecom sectors while some buying was seen in metal sector.

Proceedings in the parliament during the second and final part of the ongoing Budget session are being closely watched as the government hopes to pass the Constitution Amendment Bill for the introduction of a nationwide Goods and Services Tax (GST) in the country. The government had tabled the Constitution Amendment Bill for GST in the Lok Sabha during the winter session of parliament.

Movement of index in near term will depend on further reforms initiatives to be taken by the government and upcoming fourth quarter results of large cap companies like HDFC, Maruti Suzuki, ICICI bank, Idea cellular, Ambuja cement etc. to be announced next week.

Nifty April Future gave closing at 8338.70 with weekly net loss of 300.15 points.

Technically, Nifty Future is forming a distribution pattern and closed around the lower boundary line. Short term trend remains down until index moves above resistance level of 8550 and expected to be volatile and trade with negative bias as next week this month's derivative contracts will expire. Deeper corrections can be seen till 8000 to 7800 levels if index break below its support level of 8270.

Source : Equity Bulls

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