Nifty move will depend on new initiatives by government and upcoming first quarter result

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

Bulls were in complete control throughout the week as Nifty future attained 13-week closing high, surged after Greece's bailout was approved to potentially avoid its exit from the eurozone, Chinese market recovered after a series of government support measures to halt their recent crash and the Union Cabinet on 16 July 2015, approved to review the existing foreign direct investment (FDI) policy on various sectors, by introducing composite caps for simplification of FDI policy. The market breadth indicating the overall health of the market was positive and broad based buying was seen in the market specifically led by private sector banks, oil sector, pharma sector as mid cap and small cap indices outperformed the benchmark indices.

In overseas markets, Global markets edged higher with the Nasdaq Composite Index reaching a new closing high, as fears of a Greek exit from the eurozone subsided and Federal Reserve Chairwoman Janet Yellen wrapped up her semiannual two-day testimony before Congress.

Movement of index in near term will depend on further reform initiatives to be taken by the government and alsoupcoming first quarter results of large cap companies like Infosys, LIC Housing, Asian Paints, HUL, Bajaj Auto, Axis Bank, HDFC Bank etc. to be announced next week.

Nifty July Future gave closing at 8631 with weekly gains of 245.45 points.

Technically, Nifty Future is looking strong on daily charts and expected to continue its uptrend as it has crossed its important resistance level of 8500; and go till the level of 8700 which is also its next immediate resistance. On the down side, immediate support level is at 8400.

Source : Equity Bulls

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