Market depends on FII investment and movement of rupee against dollar : CapitalVia Global Research

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

Bears were on rampage as Nifty future had a steep fall start from the week to hit its lowest levels in more than almost 21 months. Fall was triggered by selloff in global stocks and a warning from Fed's Yellen that global financial market turbulence could hurt US growth. Market breadth indicating that overall health of the market was very weak as broad based selling was seen in most of the sectors.

In overseas stock markets, European stocks traded sharply lower, dragged down by a sell-off in banking and mining stocks, as concern intensified that the global economy is slowing. Federal Reserve Chairwoman Janet Yellen's semiannual Monetary Policy Report to the Congress on 10th February 2016, where she kept options open for more interest rate hikes from the US central bank was another trigger for selloff in global stocks.

Macroeconomic data, trend in global markets, investment by foreign institutional investors (FIIs), the movement of rupee against the dollar, movement of crude oil prices and WPI data to be announced on 15th February 2016 will dictate trend of the market in near term.

Nifty Future gave weekly closing at 6981.20 with weekly loss of 538 points.

Technically, in daily charts nifty future has bounced from important support level of 6870. Short term trend still looks down as it has given a negative weekly close but made a reversal candlestick pattern called hammer. Thus, in near future it may test the levels of 7200 which is its immediate resistance level; on downside immediate support level is at 6800 levels.

Source : Equity Bulls

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