Trend in global market and PMI data will derive market movement : CapitalVia Global Research

Mr. Rohit Gadia, Founder & CEO, CapitalVia Global Research Ltd.

Nifty Future started the week with a flat note. As the week progressed the uncertainty started to accumulate on EU referendum issue, which kept market extremely volatile. Following the shocks by voting come in favour of Brexit market once moved down till 7927 a cut of 358 points on closing basis. At the end buying interested emerges at lower level and market recovered at most part of the fall and ended with net loss of nearly 100 points.

Market movement next week will mostly depend upon the referendum on Britain exit from the European union. Over a last week and recent poll indicates a swing towards Brexit. This if prove right on 23rd June referendum will create volatility in the market. Along with this FII trading activities and Oil price movement is going to be key.

Market movement next week will mainly depend on how the investor especially the FII adjust there stance after the initial knee jerk and trend of other global market. We expect domestic market to stable and going forward will start looking at the factor like how monsoon progresses in various part of the country and data like infrastructure output and manufacturing PMI data, scheduled on coming week.

Technically the medium term trend is still intact which is bullish as long as market does not move significantly lower below 8000. On the downside 7900 is likely to act as support. Below this level 7800 mark should attract strong buying in case market retraced back this level. Technically the next week is going to be important, to decide the market medium term trend after the volatility it has witnessed this week.

Source : Equity Bulls

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