Nifty to trade between 8750 - 8950 with higher volatility - Abnish Kumar Sudhanshu, Amrapali Aadya

Mr. Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments Pvt. Ltd.

Week began with wait and watch mode, having its eye on most crucial event schedule during the week, one for the Bank of Japan monetary policy and other US Fed reserve monetary policy meeting. On Monday, positive global cues led the benchmark indices to open in the green and in the cheerful mode on the expectation the approaching Bank Of Japan meet, where possibility of raising interest rates were minimal. Finally, the day appeared when BOJ decide to keep its bank rates steady at its current level, however issued a plethora of fresh changes to its policy approach, marking its latest attempt to boost prices and goose economic growth. This constructive outlook from the BOJ meeting further added rally to the market. Moving ahead in the week, awaited Fed reserve meeting put the market in the volatile zone, though the prerequisite for the Fed rate hike was not satisfactory. Finally, US Fed reserve Jenet yellen also decide to leave interest rate unchanged but strongly signaled it could still tighten monetary policy by the end of this year as the labor market improved further. This strong and much needed news from the global market, led the indices to open on the gap-up note. Throughout the day, benchmark indices remain traded on the joyous mood. Nevertheless on Friday, indices remained very volatile and decide to close on the profit taking note after the eventful week. Since, we know the approaching week is the expiry week, hence anticipating indices to remain on choppy note.

Market ended on a bearish note on Friday amid profit booking on late trade. Broader market outperforms benchmarks as market consolidates at the higher level for a larger part of day trade. Going ahead index are likely to trade range bound ahead of September series derivative expiry. We expect nifty to trade between 8750 – 8950 with higher volatility and broader markets will continue to outperform.

Gold prices are heading towards best weekly gains in two month as fares of fed rate hike fade away. During the week gold gain more than 450 points its best since July. Fed's signals of gradual hike in interest rate with one hike by 2016 and two hike in 2017 which making a case for new bull run. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases. The Fed signals reassure investor's confidence who had feared the U.S. central bank could move more quickly to tighten monetary policy.

We expect rally in gold prices are likely to sustain on the back of restoration of investor confidence in the yellow metals, festive buying of jewellery is another positive trigger. Technically 31150 is place as strong support and we expect fresh buying at this level.

Source : Equity Bulls

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