RBI's monetary policy review on 29th will decide the direction of Market - CapitalVia Global Research

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

Nifty Future bounced back in positive zone amid high volatility seen throughout the week as small recovery was seen from lower levels as traders rolled over positions in the derivative segment from the September 2015 series to October 2015 series. Market breadth indicating the overall health of the market was quite weak. IT stocks and some specific mid cap stocks led the recovery for key benchmark indices.

In overseas markets, Asian and European markets edged lower in choppy trade. US stocks also were trading lower, dragged down by economic reports portraying US factory growth as tepid and China in its worst manufacturing contraction since the global financial crisis.

RBI is scheduled to announce its fourth bi-monthly monetary policy review on Tuesday, 29 September 2015 and we are expecting that it would cut the repo rate by 25 basis points as inflation has sank a little.

Outcome of RBI's fourth bi-monthly monetary policy review, macroeconomic data, trend in global markets, investment by foreign institutional investors (FIIs), the movement of rupee against the dollar and crude oil price movement will dictate trend of the market in near term and also auto sales data to be announced starting on 1st October 2015.

Nifty September Future gave closing at 7869.15 with weekly loss of 113.95 points.

Technically, in daily charts Nifty Future is looking weak and trading in broad range of 8100 - 7700 levels. It is expected to break the range on the lower side. On the upside, if it manages to break and sustain below its important support level of 7700 on closing basis, its next support is at 7650 levels and on the down side immediate resistance level is at 8250.

Source : Equity Bulls

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