Coming week current account numbers and foreign exchange reserves will be eyed: Epic Research

Mr. Mustafa Nadeem, CEO, Epic Research for your consideration:

Nifty ended up on positive note pairing last week losses though finds hard to breach the all time high mark due to systematic risk as Geo-political tensions rises. Nifty this traded in range that was from 9970 - 10100 and going forward a break of this range will likely give some direction to market in short term. We see 10140 as a Major resistance on immediate basis while beyond that 10170 may give some resistance to Nifty. On downside this week bottom at 9970 will be acting as a crucial support and a lifeline for bulls. As far as Market remains above this level we are cautiously optimistic for conservative upside of 10150 - 10170. A breach of 9970 will negate the bulls hope as it may trigger more panic and selling pressure for short term bears.

Over all medium term structure looks positive given the fact that market has not corrected much despite ongoing geo-political tensions. Once a close above 10150 is seen, our initial resistance, we believe the upside to be there since momentum will further get strong. Breadth of the market is another concern for bulls since we have seen very little and selected action in heavyweights while most of them remains structurally sideways. Participation from Metals, Banking and Infra will give boost to overall market breadth else in its absence it will be bears play.

Derivatives data also was lackluster this week signaling a range bound play since not much activity has been observed which has resulted a change in overall outlook in short term. Range as per derivatives continue to be 9900 - 10100 while recent swing at 9960 will be crucial in terms of momentum players. Due to ongoing geo-political tensions we are not seeing any aggressive buying in heavyweights as well. This week, Higher than expected inflation at of WPI at 3.24 and fuel at 9.99% also kept investors sentiment in check while in coming week current account numbers and foreign exchange reserves will be eyed as well.

We remain cautiously optimistic with buy on dips approach with conservative target of 10150 - 10170 in short term while support is seen at 9960 on closing basis.

Source : Equity Bulls

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