Volaitility to remain in market ahead of budget : CapitalVia Global Research

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

This week the market started on a positive note and continue its advancement further to cross an important resistance around the 8400 level. We expect the momentum to pick up going forward. The market has given clear indications that it is the bulls who are in full control of the market. As long as the market stays above the support at 8200 level, we expect the market and the momentum to stay strong. From the medium-term perspective, we expect the market to stay in a range between 8200-8600 going forward. Where it is very likely that market will hit the 8600 level, we don't expect the low that the market posted at 7950 to be violated anytime soon.

Key support from medium-term perspective is at 8200 and Resistance is at 8600 level.

Globally, US market started to correct after Donald Trump gave little clarity on his promises for economic growth that had fuelled a record rally on the wall street for the last two months. S&P 500 experienced its biggest one-day drop since Dec 30th , following the Trump speech, as pharmaceutical stocks corrected heavily after Trump blasted pharmaceutical companies over high drug prices.

The U.S. Dollar hit its lowest level in five weeks against a basket of major currencies and ended the week with its worst since November. Gold is likely to rally higher, as we already witnessed it to hit $1200 mark the first time since November. We expect gold to rally further as dollar likely to sink. We also expect Oil prices to move higher driven by the strong demand growth in China.

Market movement going forward is depend on next week's data like WPI Inflation YoY DEC, along with Balance of Trade DEC, is scheduled to be released on Monday. Globally, ECB Press Conference due on Thursday, Unemployment Claims, and Housing Starts will be important.

Source : Equity Bulls

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