A close above 8180 in Nifty would indicate more upside in the near term - ZEN Securities Ltd

For the 6th consecutive week, the market ended with gains. 8180 is the immediate resistance level for the market, only a close above this crucial level would indicate that the market could witness further upside in the near term. A fall below 8030 level would indicate that the near term weakness could increase. The selective stock movement is expected to continue in the near term.

News flow from both global and domestic front will dictate market movement this week. Data releases from China will be in focus after a string of weak data has raised concerns about the state of the Chinese economy.

The domestic markets are likely to see range bound movement this week although the undertone is likely to remain bullish. Stock specific activity will continue to set the trend for the market movement.

The monthly F&O expiry on the 25th September can lead up to some stock specific volatility in the market.

Crude prices and the Rupee-dollar movement will also provide cues for the market movement during the week. The Rupee, which remained range bound during the week tracking global and domestic market movement is likely to remain under pressure in the near term too.

Crude prices on the other hand continue to remain near 2 year lows but are unlikely to move further down after the OPEC has indicated that it may slow production to halt the price spiral. Any increase in crude prices may weigh on market sentiments.

The markets will be keenly eyeing the FII flow into the Indian markets for cues. With the Fed move out of the way, the FII flows which were negative for most of last week are likely to pick up during the week and may boost market sentiments.

While 8057, 7984 and 7916 are important support levels for the Nifty, 8142, 8186 and 8227 are important resistance levels for the Nifty. While 26904, 26732 and 26530 are the immediate support levels for the Sensex, while 27226, 27380 and 27500 are the immediate resistance levels for the Sensex.

A close above 8180 would indicate more upside in the near term.

Source : Equity Bulls

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