Next Week market will depend on the IIP data

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

Nifty Future traded with negative sentiments throughout the week hitting its lowest level in more than 13 months. Sharp fall was triggered by selloff in global markets and slow down in china's economy. Market breadth indicating the overall health of the market was very weak. Broad based selling was seen across the board.

In overseas markets, all global markets fell on global growth worries. The job data could be a key factor for the US Federal Reserve on its decision whether to raise interest rates at its two-day monetary policy meeting which begins on 16 September 2015.

Movement of index in near term will depend on further reform initiatives to be taken by the government and IIP data to be announced starting on 11th September 2015.

Nifty September Future gave closing at 7662.05 with weekly loss of 306.65 points.

Technically, Nifty Future is looking weak, in daily charts a bearish pattern called head and shoulder having neckline of 7920 has given confirmed breakout, it is expected to head southward as deeper correction upto 7400 - 7200 can be seen in short term. On down side immediate support level is at 7550. On the upside immediate resistance is at 7920 levels.

Source : Equity Bulls

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