Mr. Vivek Gupta, CMT - Director Research, CapitalVia Global Research Limited.
Nifty future witnessed high volatility during the week as on last day recovered its initial losses early during the week to give a negative weekly close. Recovery was triggered by sharp recovery in crude oil prices and positive global markets as reduced expectations for further interest rate increases. Market breadth indicating the overall health of the market was positive as buying was seen in most of the sectors on last day of the week specifically led by pharma, banking, metals, financials, and fmcg stocks.
In overseas stock markets, all global markets edged higher amid reduced expectations for further interest rate increases from the US Federal Reserve in this calendar year.
Macroeconomic data, trend in global markets, investment by foreign institutional investors (FIIs), the movement of rupee against the dollar and movement of crude oil prices, CPI and IIP data to announced on 12th feb 2016 also depend on Q3 results of companies like Star, Sail, Bharat Forge, Auropharma, Cipla, SBIN, Tata Motor, Heromoto Corp, Bhel, BEML, Ashokley, M&M, IDBI etc. will dictate trend of the market in near term.
Nifty Future gave weekly closing at 7527 with weekly marginal gains of 104.35 points.
In daily charts, short term trend of nifty future is up as it is trading above its important support level of 7370 and gave a weekly closing above 7500 levels. Thus, in near future it may test the levels of 7650 which is its immediate important resistance level if it holds its immediate support level of 7370 on closing basis; on downside immediate support level is at 7370 levels.