Nifty Futures tumble to its lowest closing level in 33 weeks

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

"Nifty Future tumbled during the week to hit its lowest closing level in more than 33 weeks, despite positive news of India's current account deficit (CAD) narrowed sharply in Q4 March 2015 from Q3 December 2014, according to data released by the Reserve Bank of India (RBI) on 10th of June 2015. High volatility was witnessed during the week and market breadth indicating the overall health of the market was negative. Broad based selling was witnessed throughout the week specifically led by IT, banking, metal, mid cap and small cap stocks.

In overseas stock markets, European shares edged higher following optimism over Greek financing talks. Asian stocks also edged higher. US stocks jumped after a weaker dollar boosted commodities and on fresh hopes that Greece's creditors will release more bailout cash.

Movement of index in near term will depend on further reform initiatives to be taken by the government. IIP and CPI data to be announced today at 5:30 p.m in evening, also WPI data to be announced next week.

Technically, Nifty Future is looking weak on charts and it is expected to head southwards as it has broken decisively the psychological as well as important support level of 8000 mark which shows bearishness. Once it breaks the immediate support level of 7930, further corrections can be seen till the levels of 7800 - 7700 while its immediate resistance level is at 8200."

Source : Equity Bulls

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