Market movement in coming week will depend on quarterly result and WPI announcement

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

Nifty started the week with cautious note keeping eye on RBI monetary policy review and started to losing its momentum since then as RBI kept rate unchanged, although in line with expectation. Most of the trading session for the week market traded with negative bias before it recovered some part of the fall to close at 8672 down by 36 point on weekly basis.

Technical setup of the market remained bullish but we have seen sign of lack of momentum which can only improve if Nifty manages to move above 8750. Momentum indicators although slightly overbought, no signal yet visible, indicating market is topping out. Holding above the 8500 is going to be key for the market. Break below this level we may see short term correction to fuel by profit booking. Our midterm trend outlook is still very strong as long as market remained above 8500. Overall its seems sentiment is extremely positive and we expect market to move higher after a pause or consolidation around this level.

Market movement in coming week will depend on quarterly result announcement of some of major companies like Just Dial Ltd, Power Grid corporation of India ltd, Philips Carbon and India cements ltd. Along with this activities of Foreign portfolio investor who stayed net buyers till date is going to be key. Investor will keep an watch on WPI inflation data , scheduled to come on Tuesday next week along with data like Bank loan growth and foreign Reserves scheduled to come on Friday.

Key support from medium term perspective is at 8550-8570 and Resistance is at 8720-8750 level.

Source : Equity Bulls

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