Nifty's 8200 would be the next target - CapitalVia Global Research Ltd.

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

Last week Nifty future was on roller coaster ride as it closed in negative with marginal losses to hit lowest level in more than two weeks. The negative sentiments in the markets was triggered by the Japanese central bank, which held off from expanding monetary stimulus, pulled global stocks lower. Market breadth indicating the overall health of the market was mixed as buying was witnessed in sectors specifically in private banks, realty, metals, cement, and select mid cap stocks etc.

Macroeconomic data, trend in global markets, investment by foreign institutional investors (FIIs), movement of crude oil prices and next batch of Q4 results of companies like HDFC ltd, Adaniport, Eicher Motors, Hero Moto Corp to be announced will dictate trend of the market in near term. Nifty Future gave weekly closing at 7894.80 with marginal losses of 16.35 points.

Technically, in weekly charts Nifty Future is forming reversal Doji candlestick pattern consecutively for two weeks below psychological level of 8000 which suggests indecisiveness for the continuation of the current up trend. Thus, in near future level of 8000 will act as an immediate resistance and on downside immediate support level is at 7800 levels. If it breaches its immediate resistance level of 8200 would be the next target and on down side if support is broken correction can be seen till 7700 levels which is a strong support going forward according to gap theory.

Source : Equity Bulls

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