Market will remain volatile due to continuous fall in crude oil prices - CapitalVia

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

A rally in global stocks aided fresh up move in Nifty as US Federal Reserve emphasized a gradual path for future interest rate hikes after raising the benchmark rate by 25 basis points at the conclusion of its two-day monetary policy meeting as the Nifty Future attains two week high. Market breadth indicating the overall health of the market was positive as broad based buying was seen in most of the sectors specially led by metals, finance, infra and select mid cap stocks led the rally and some profit booking was seen on last trading session of the week.

Macroeconomic data, trend in global markets, investment by foreign institutional investors (FIIs), the movement of rupee against the dollar and movement of crude oil prices will dictate trend of the market in near term. The market may remain volatile due to concerns over continuous falling of crude oil prices.

Nifty December Future gave closing at 7784.85 with weekly gains of 156.95 points.

Technically, in daily charts short term trend of nifty future is up. NIFTY future has given a positive weekly close making piercing line candlestick pattern. Thus, in near future it may test levels of 7950 - 8000 if it holds its important support level of 7700. If it breaches this level, it may show further correction till 7500 level, on upside immediate resistance is at 7930 levels.

Source : Equity Bulls

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