Market will depend on further reform initiatives to be taken by the government - CapitalVia Global Research

Weekly nifty report by Mr. Vivek Gupta, CMT - Director Research, CapitalVia Global Research Limited.

Nifty Future witnessed high volatility throughout the week to close at six weeks low. The fall in nifty future was triggered by fall in global markets and depreciating Indian currency due fear of Chinese currency devaluation. The market breadth indicating the overall health of the market was quite weak. Banking, financial, realty, metal and telecom stocks led the fall.

In overseas markets, European stocks edged lower, with energy stocks feeling the weight of falling oil prices and concerns about a slowdown in growth in China. Earlier during the global day, Chinese stocks led decline in Asian markets after the International Monetary Fund signaled that it won't add the yuan to its basket of reserve currencies for at least a year. US stocks edged lower, as losses in the energy sector overshadowed the release of the minutes of the Federal Reserve's policy-setting committee.

Movement of index in near term will depend on further reform initiatives to be taken by the government and also expiry of derivative contracts of August month.

Nifty August Future gave closing at 8287.90 with weekly loss of 254.80 points.

Technically, Nifty Future is looking weak in daily charts as a complex head and shoulder pattern has given break out on the down side having a neckline of 8330. On the downside, it is expected to head southward if it manages to sustain below its important neckline on closing basis. On down side immediate support level is at 8150 and major support level is at 8000 levels. On the upside immediate resistance is at 8500 levels.

Source : Equity Bulls

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