FPI data and quarterly results will drive coming week market sentiments - CapitalVia Global Research

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

Nifty started the week with cautious note with speculation that policy makers in Federal Reserves may agree to raise interest rate in September, however as week progress the news that chances of a rate hike is low and very less likely market started to stabilize and manages to hold above the key level of 8600. Most of the trading session market was extremely volatile and traded in a range of 8600-8750 before closing at 8680 almost flat 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 8600 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 8600. 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 NTPC Ltd, Hindustan petroleum Corporation ltd, Hindustan Copper Ltd and Tata power company Ltd. Along with this activities of Foreign portfolio investor who stayed net buyers till date is going to be key. Volatility is expected due to F&O expiry next week and Investor will keep an watch on Infrastructure output and GDP growth rate data, scheduled to come on Wednesday next week along with data like manufacturing PME scheduled to come on Thursday.

Source : Equity Bulls

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