Nifty's Next week Level is 8800 - CapitalVia Global Research

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

Nifty Future snaps four days losing streak triggered by China weakening its currency early during the week. The market sentiment was boosted by data released today, 14 August 2015 showing that annual wholesale prices continued to decline for the ninth consecutive month in July, raising hopes that the Reserve Bank of India (RBI) may lower key policy rates at its forthcoming monetary policy Review meet on 29 September 2015. The market breadth indicating the overall health of the market was strong. IT, pharma, auto and realty stocks led the rally.

Meanwhile, the government is reportedly sounding out political parties over scheduling a two-day session of Parliament in September ahead of the Bihar elections to pass the Goods and Services Tax Bill, as monsoon session of Parliament ended yesterday, without passage of any major bills amid political tussle between the government and the opposition parties.

In overseas markets, global markets edged higher in latter part of the week after an early slide triggered by China weakening its currency again. China's central bank said there was no basis for further yuan depreciation after devaluation this week that has seen the currency slide.

Movement of index in near term will depend on further reform initiatives to be taken by the government.

Nifty August Future gave closing at 8545.20 with weekly loss of 48.90 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.

Source : Equity Bulls

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