Market will focus on Yellen's speech on fed rate cut : Capitavia Global Research

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

Nifty started the week with negative note in absence of any strong trigger and in the back drop of F&O expiry and market was mostly lackluster throughout the trading session. However at the end despite couple of effort from bears to drag market lower below the key level of 8600, it manages to sustain above the level and closed at 8629 down around 50 points on weekly closing basis. Volatility was high during this week partly because of F&O expiry.

We believe technical setup of the market is still bullish and found nothing which could be a source of concern at least from medium term point of view. Yes! We have seen sign of lack of momentum, but that was expected at some point after the strong rally we have witnessed over last couple of month. Any move above 8750 the same is likely to improve. 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 is awaiting for any hints from Fed regarding timing of rate cut if any in the Yellen's speech in its annual Monetary policy symposium end of the week. Quarterly result announcement of some of major companies like MOIL Ltd, Indian Oil Corporation ltd, DLF Ltd and Bharat Petroleum corporation Ltd is likely to set the investor sentiment. Infrastructure output is likely to come at 6.4-6.5% higher than the previous data point and the GDP, where expectation is around 7.4% is going to be market mover next week. This scheduled to come on Wednesday followed by manufacturing PMI due on Thursday.

Source : Equity Bulls

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