Mr. Rohit Gadia, Founder & CEO, CapitalVia Global Research Ltd.
Nifty Future started the week on flat note and remained extremely volatile throughout the week. Post RBI policy market witnessed a strong rally and posted a new swing high to move above 8300 level, which market seen last time during October last year. Since then market breadth started to weaken which dragged the market down. Nifty June Future gave closing below 8200 with net loss of 42 points.
Nifty future may correct till 8000 level in the upcoming trading sessions if it sustain below the important support of 8200. Next support level is at 8000 and it has strong resistance around 8280-8300. However, technically the medium term trend of the market is extremely bullish and we expect the up trend to resume after a short term correction.
Market movement in next week will depend on inflation rate data to be announced on 13th June 2016. The WPI data to be announced on14th June 2016 is also likely to bring volatility in the market. Along with this investment activity of foreign institutional investor (FIIs), the movement of global market will be key for the market. Along with this US Fed meet due on 23rd June 15th June will be crucial in deciding the future outcome. With that both the industrial production and manufacturing production year on year data came below the forecast will effect the market negatively.