Nifty will touch 8800 level in coming week - CapitalVia Global Research Limited

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

Throughout the week high volatility was witnessed as there was a continuous tussle between the bulls and the bears resulted to close negative on weekly basis, due to today's complete washout of Lok Sabha proceedings in the first week of the monsoon session, because of a political tussle between the National Democratic Alliance (NDA) government and the Congress party triggered concerns about the passage of key reform bills. The market breadth indicating the overall health of the market was negative. Stock specific movement was seen during the week.

In overseas markets, European stocks edged higher following further evidence of a modest recovery in the eurozone economy. US jobs data underpinned the dollar as it bolstered bets that the US Federal Reserve is on track to hike interest rates later this year.

Movement of index in near term will depend on further reform initiatives to be taken by the government in the current ongoing parliament session and also upcoming first quarter results of large cap companies like Maruti, Kotak Bank, ICICI Bank, HDFC Ltd, Tech Mahindra, MRF, PNB, Bank of Baroda, Dabur, etc. to be announced next week.

Nifty July Future gave closing at 8535.05 with weekly loss of 90.00 points.

Technically, Nifty Future is trading in narrow range of 8470 - 8670 levels; it is expected to remain volatile as next week July month's derivative contract will expire. On the upside, if it manages to break and sustain above its important resistance level of 8670 on closing basis, its next resistance is at 8800 levels and on down side immediate support level is at 8330, if it breaches the range on the lower side.

Source : Equity Bulls

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