Market Movement depend on RBI's bi-monthly monetary policy, crude oil prices and Q3 results

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

Nifty future surges on recovery in crude oil prices and positive global markets as Bank of Japan expands monetary stimulus. Market breadth indicating the overall health of the market was positive as buying was seen in most of the sectors on last day of the week specifically led by auto, private banks, infrastructure, fmcg and capital good stocks.

In overseas stock markets, Japanese and Chinese stocks led gains in Asian markets after the Bank of Japan (BOJ) surprised investors by introducing a negative interest-rate policy and China's central bank pumped an additional 100 billion yuan ($15.21 billion) into the financial system via an extra money-market operation.

The Reserve Bank of India (RBI) will announce its sixth bi-monthly monetary policy at 11:00 IST on Tuesday, 2nd February 2016, 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, auto sales numbers of auto companies and also depend on Q3 results of companies like Century textile, Tech Mahindra, DLF, Indian Oil, Tata Steel, Eicher Motor, Lupin, Jet Airways, Arvind mills etc. will dictate trend of the market in near term.

Nifty Future gave weekly closing at 7568.05 with weekly marginal gains of 137.35 points.

In daily charts, as expected nifty future has given a positive weekly close giving confirmation of a reversal candlestick pattern called hammer. Short term trend of nifty future is up but likely to face stiff resistance at 7650 levels. Thus, in near future it may test the levels of 7650 which is its immediate important resistance level if it holds the level of 7470 on closing basis; on downside immediate support level is at 7470 levels.

Source : Equity Bulls

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