Market depend on Outcome of FOMC meeting and WPI data: CapitalVia Global Research Ltd

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

This week bears were in complete control over bulls as the Nifty Future was hammered throughout the week except on Thursday, triggered by the speculations over U.S fed rate hike, continuous falling crude oil prices heightened fears about receding global growth and expectation of GST bill not getting passed in the ongoing winter session. Nifty has hit its lowest level in more than thirteen weeks. Market breadth indicating the overall health of the market was very negative as broad based selling was seen in most of the sectors. Banking, auto, finance & infra led the fall and some short covering was seen in metal stocks.

Outcome of FOMC meeting next week on 15th and 16th December 2015, bills being passed in winter session of parliament, 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 WPI data to be announced on 14th December 2015.

Nifty December Future gave closing at 7628 with weekly loss of 192.50 points. Technically, in daily charts short term trend of nifty future is down and trading below 200 DMA with negative sentiments. NIFTY future has broken its immediate support level of 7700 and hovering around its previous lows of 7550 levels. Thus, in near future if it breaches this important support level decisively, it may show further correction till 7400 level, on upside immediate resistance is at 7800 levels.

Source : Equity Bulls

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