Nifty Future tumbled and extended its previous week’s losses hitting its lowest closing level in more than three weeks as exit polls predict victory for AAP in Delhi assembly election but bounced back from the lows and closed at its highest level in almost a week getting help from the factors like Russia, Ukraine reaching a cease-fire deal, friendlier talks between negotiators in Europe over Greece’s debt troubles and strong third quarter results declared by SBI, BPCL.
In overseas markets, Asian and European market edged higher on news of a ceasefire accord in Ukraine, while Sweden’s surprise move to cut its main rate into negative territory and hopes of a resolution between debt-strapped Greece and its creditors burnished risk appetite. US stocks also surged with major benchmarks nearing record highs, buoyed by a truce deal in Ukraine and strong quarterly earnings reports.
Movement of index in near term will be consistently remains on further reform initiatives to be taken by the government and also Q3 results of large cap companies like ONGC, HDFC Ltd, HDFC Bank, Ambuja Cement etc.
Nifty February Future gave closing at 8847.10 with the weekly loss of 135.20 points.
In near term Nifty likely to remain volatile but expected to continue its uptrend having resistance around the levels of 8900 on the upside while having important support around the levels of 8650.
By Vivek Gupta, CMT – Director Research, CapitalVia Global Research Limited.