Next week market will depend on the initiative of Government and monthly Autosales number - CapitalVia

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

Nifty Future recovered from the lower levels amid high volatility throughout the week. Stocks rose across the global after fresh stimulus for the economy from China's central bank and on hints of a delay in interest rate increase by the US Federal Reserve. The market breadth indicating the overall health of the market was quite strong. Banking, auto, realty and pharma stocks led the rally.

Movement of index in near term will depend on further reform initiatives to be taken by the government and monthly auto sale numbers of Auto sector to be announced starting on 1st September 2015.

Nifty September Future gave closing at 8005 with weekly loss of 301.35 points.

Technically, Nifty Future is looking weak, in daily charts a bearish pattern has formed called head and shoulder having neckline of 7920. In near term Nifty Future may find resistance at the level of 8200 and may show some recovery if continues to trade above the immediate support of 7850; while with the breach of 7850 it is expected to head southward till the next major support level of 7650.

Source : Equity Bulls

Keywords