The US Federal Reserve's meeting to take a call on tapering its 85-billion-a-month bond buying program, the Federal Open Market Committee (FOMC) finally decided to start tapering its third round of quantitative easing By January 2014. These were the key triggers for market this week. Nifty Dec Fut gave a closing at 6300 up by 65.45 bps. And Sensex closed at 21080.
For next week Nifty Dec Fut can manage to show some bull run as technically it is looking strong on charts and has tested its nearby resistance level, it is sustaining above its rising trendline and its 10 and 50 days moving average giving further indication for upside movement. If Nifty Dec Fut manages to cross it major resistance level of 6320 it can test the levels of 6370 and 6452. Its important Support level to watch is 6145, breaching of this can take Nifty to 6035 Mark.
Stock to watch:
TATA POWER FUT:- Technically stock is looking very strong on charts, its overall trend is up, it is forming a pennant pattern on its daily chart there by indicating trend continuation in upcoming sessions, and more over stock is sustaining above its 10 and 50 days moving average. One can take fresh long positions in Tata Power fut long above 92.45 for tgts of 95.
By Vivek Gupta, Director Research, CapitalVia Global Research Limited
NOTE: The views express are those of the author.