Mr. Rakesh Tarway, Head of Research, Reliance Securities - Weekly Market Outlook

'NIFTY ended flat up by 0.6% trading in narrow range of 107 points despite a perceived negative event, in which RBI maintained status quo on interest rates. There was some bout of profit booking in Metals and PSU Banking sectors to decline by 1.7% and 0.9% respectively. IT sector saw a sharp up move with gains of 3.6% balancing the sector rotations keeping the headline indices flat. CNX Midcaps and CNX Smallcaps continue to outperform registering new all time highs with each gaining by 1% during the week.

NIFTY has ended the week with an indecisive Doji candle; one can expect an either side movement in the coming week. The major trend reversal will be at 8,650 from current levels below which we expect sharp profit booking in midcaps and small caps. The option data continues to suggest a strong resistance at around 8,950 to 9,000 mark on upside.

Bank NIFTY has failed to cross the upside resistance of 20,600 as the credit policy was a non-event and the results from SBI also failed to lead the market momentum. On downside, crucial support is seen at around 19,600 below which we could see sharp profit booking in banking sector and it would mark a lower top on the upside. Nifty Pharma is trading at crucial support levels holding the 200 week average of 10,200 since last 8 weeks and any positive developments with respect to the sector would spark a strong up move from current levels.'

Source : Equity Bulls

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