Nifty will test a level of 9000 - CapitalVia

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

Nifty Future witnessed high intraday volatility on 4th August 2015 but recovered its intraday losses on the same day as Reserve Bank of India (RBI) kept its benchmark lending rate viz. the repo rate unchanged at 7.25% after a monetary policy; RBI Governor Dr. Raghuram G. Rajan left the door open for monetary policy easing. Nifty future attained highest closing levels in two weeks. The market breadth indicating the overall health of the market was strong. PSU banking stocks, financial, pharma, realty and led the rally as again midcap stocks outperformed the benchmark indices. Meanwhile, retirement fund manager Employees Provident Fund Organization (EPFO) started to invest in the stock market through the exchange-traded funds (ETFs) route from 6th August 2015.

Movement of index in near term will depend on further reform initiatives to be taken by the government in the current ongoing monsoon parliament session and also upcoming first quarter results of companies like Tata Steel, Sunpharma, SBI, HPCL, IDBI Bank, Godrejind, Coal India, ONGC, IOC, etc. to be announced next week.

Nifty July Future gave closing at 8599.85 with marginal weekly gains of 30.20 points.

Technically, Nifty Future is trading in broad range of 8330 - 8670 levels. On daily chart, it is looking strong and expected to break the range on the higher side. On the upside, if it manages to break and sustain above its important resistance level of 8670 on closing basis, its next resistance is at 8800 levels and on the down side immediate support level is at 8450.

We are expecting further bullishness in Nifty and it may Test the level of 9000 in next 6 Months.

Source : Equity Bulls

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