Reserve Bank is likely to keep the repo rate unchanged - Vivek Gupta,CapitalVia

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

Nifty Future recovered from its initial losses in early part of the week to close at one week high with investor sentiment boosted by news reports that the Union Cabinet has approved amendments to the goods and services tax (GST) bill to compensate states for revenue loss for five years on introduction of the uniform nationwide indirect tax regime, as has been suggested by Rajya Sabha Select Committee and on 30th July 2015, Department of Industrial Policy & Promotion (DIPP) introducing composite caps for simplification of the foreign direct investment (FDI) The market breadth indicating the overall health of the market was strong. Financial, FMCG, Pharma and banking stocks led the rally as midcap and small cap stocks outperformed the benchmark indices.

Movement of index in near term will depend on further reform initiatives to be taken by the government in the current ongoing monsoon parliament session and upcoming first quarter results of large cap companies like HCL Tech, Hero Moto Corp, Bharat Forge, Bharti Airtel, Siemens, Tata Motor, Mahindra and Mahindra, REC Ltd, Bata India, etc. to be announced next week.

The Reserve Bank is likely to keep the repo rate unchanged in its upcoming third bi-monthly monetary policy meet scheduled on Tuesday, 4 August 2015.

Nifty July Future gave closing at 8571.70 with marginal weekly gains of 37.35 points. Technically, Nifty Future is trading in broad range of 8330 - 8670 levels. On daily chart, it is looking strong and expected to break the range on the higher side. 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 8450.

Source : Equity Bulls

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