Next Week Market will depend on the CPI and IIP data to be announced on 12th October - CapitalVia Global

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

Bulls had upper hand over the bears in this week as Nifty Future hits seven weeks high. Rally in nifty got support from rally in global markets after the Fed minutes showed that Fed officials were largely hesitant to hike rates for the first time in nearly decade. Market breadth indicating the overall health of the market was quite strong. Rate sensitive stocks, pharma and mid cap stocks led the rally as midcap and small cap indices out performed key benchmark indices.

In overseas stock markets, all global markets edged higher after the minutes of the Federal Reserve's latest meeting showed further confirmation that policy makers won't rush to tighten rates at a time of slackening global growth.

Movement of index in near term will depend on further reform initiatives to be taken by the government, trend in global markets, investment by foreign institutional investors (FIIs), the movement of rupee against the dollar, CPI and IIP data to be announced on 12th October 2015 and also WPI data to be announced on 14th October 2015.

Nifty October Future gave closing at 8195.00 with weekly gains of 218.05 points.

Technically, Nifty future has bounced from the lowest level and retraced up to 61.80% which is at 8240 levels according to Fibonacci retracements. So, it is likely to face strong resistance around 8250 - 8300 levels. On the upside, if it manages to sustain above its important resistance level of 8300 on closing basis, its next resistance is at 8500 levels and on the downside immediate support level is at 8100.

Source : Equity Bulls

Keywords