Next week market will depend on Greece referendum decision

Mr. Vivek Gupta, CMT – Director Research, CapitalVia Global Research Limited.

After witnessing a sharp slide during the initial part of the trading session due to Greek crisis, index bounced back later as Nifty hit its highest level in more than 10 weeks boosted by continuous buying from DIIs and positive statement by Reserve Bank of India Governor Raghuram Rajan reportedly said on 2nd July 2015, that India's economy is in the process of a steady recovery as there are signs of capital investments picking up and that the government needs to work on reforms to accelerate growth further. The market breadth indicating the overall health of the market was strong. Financial, FMCG, Pharma and banking stocks led the rally as midcap stocks outperformed the benchmark indices.

In overseas markets, global markets edged lower as the outcome of Greece's bailout terms looks uncertain and economic data from the US failed to buoy sentiment, as investors grappled with heightened uncertainty tied to Greece ahead of a referendum on Sunday, 5 July 2015, to vote on the country's status as a euro zone member.

Movement of index in near term will depend on further reform initiatives to be taken by the government and also IIP data to be announced next week on 10th July 2015.

Nifty July Future gave closing at 8495 with weekly gains of 113.35 points. Technically, Nifty Future is looking bullish on daily charts as it is hovering below its important resistance level of 8500, once it break its resistance level decisively it is expected to till 8700 levels which is its next immediate resistance and immediate support level is at 8300.

Source : Equity Bulls

Keywords