Market movement will depend on GST Bill and RBI policy - CapitalVia Global Research Ltd

Mr. Rohit Gadia, Founder & CEO, CapitalVia Global Research Limited.

Nifty Future is moving up on the expectation of GST bill getting passed in ongoing winter session. Nifty hit its highest closing level in almost three weeks from the recent lows. Market breadth indicating the overall health of the market was positive. Banking, auto, finance, infra and metal stocks led the rally.

The Reserve Bank of India (RBI) will announce its fifth bi-monthly monetary policy decision on Tuesday, 1st December 2015. It is expected that RBI Governor will keep the rates unchanged i.e. CRR rate at 4% and repo rate at 6.75%. In ongoing winter session of parliament, it is expected that GST constitutional amendment bill and other bills will be passed by NDA government in Rajya Sabha.

The investors are hopeful that GST will see the light of the day during this ongoing winter session of the parliament on account of the government's willingness to negotiate. Trend in global markets, investment by foreign institutional investors (FIIs), the movement of rupee against the dollar and movement of crude oil prices will dictate trend of the market in near term and also auto sales numbers are to be announced starting next month.

Nifty December Future gave closing at 7972.20 with weekly gains of 120.60 points.

Technically, in daily charts short term trend of nifty future is up. NIFTY future has given breakout of continuation pattern called cup and handle. Thus, in near future it may test levels of 8050 - 8100 if it holds its important support level of 7900. If it breaches this level, it may show further correction till 7700 level, on upside immediate resistance is at 8100 levels.

Source : Equity Bulls

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