Market will depend on global markets and movement in crude oil prices - CapitalVia Global Research

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

Last week Nifty future was on roller coaster ride but slowly marching on the upside as it managed to give positive close amid high volatility. The positive sentiments in the markets was triggered by stronger currencies relative to the US dollar on the back of the US Federal Reserve slashing its projections for rate increases to two in 2016 from an earlier projection of four after keeping rates unchanged at the conclusion of a two-day monetary policy review on Wednesday, 16 March 2016. Market breadth indicating the overall health of the market was quite positive as buying was witnessed in sectors specifically led by metals, oil and gas, banking, capital goods etc.

We expect the Reserve Bank of India to cut interest rates by 25 basis points at its policy review on April 5 after data on Monday showed inflation easing more than expected in February. Market in near term will depend on trend in global markets, investment by foreign portfolio investors (FPIs), movement of crude oil prices.

Nifty Future gave weekly closing at 7605.30 with marginal gains of 92.55 points.

Technically, in daily charts short term trend of Nifty Future is up as it is trading above 50 and 20 DMA. As it has crossed the narrow range on upside and gave close above 7600. Thus, in near future, it may test the levels of 7700 levels which is its next immediate resistance level but likely to face strong resistance of downward sloping trendline around 7650 levels and on downside immediate support level is at 7500 levels.

Source : Equity Bulls

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