Equity market outlook: Nifty set for 8,000-pt level; BoI, McDowell eyed

Jul 25 2014, 16:27 IST
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Traders may initiate the long position in the stock with the crossing of its resistance level.(Reuters) Traders may initiate the long position in the stock with the crossing of its resistance level.(Reuters)
SummaryOverall trend of Nifty July Future is still bullish on chart,Previous week nifty July Future tested its resistance level of 7815 ...

The stock markets opened in green tracking positive global cues. In addition to that positive QI numbers posted by few big guns like energy major RIL, HDFC Bank, Axis Bank etc contributed to the rise. Moreover, the advancement of monsoon rains has boosted the market sentiments. But towards the end of the weekly trading sessions indian bechmark indices slipped from the tops amid profit booking in the shares. Nifty July Fut closed at 7783.

Overall trend of Nifty July Future is still bullish on chart,Previous week nifty July Future tested its resistance level of 7815, Gave a fresh high of 7838, but unable to sustain on highs it tumbled down in upcoming sessions Nifty July future can give the up move only if it manages to hold its major support level of 7735. If Nifty July Future crosses its resistance level of 7842 levels of 7920 & 8000 can be expected. On short side if It breaches its support level of 7735 corrective move till the levels of 7665 & 7590 can be expected.

Stocks to watch:

BANK OF INDIA FUT BUY- From past few trading session stock is in a corrective phase and is sustaining below its 50 days moving average. Technically stock is looking good for making long positions, one can go long in Bank of India Fut above the levels of 302.60 for targets of 308 & 315 with a strict stoploss order to be placed at 299.85

MCDOWELL-NSE CASH BUY-The stock is trading near its major support mark on daily charts, also it is trading with the positive biasness from the last few trading session,Further the stock is trading with the RSI of 43. It is likely to show some upside movement with the crossing of its resistance level of 2420. Traders may initiate the long position in the stock with the crossing of its resistance level, for the target of 2470,2520. Support lies at 2370 which will act as stop loss for the stock.

By Vivek Gupta, Director Research, CapitalVia Global Research Limited.

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