Nifty January Future series gave significant gap up opening and continued its positive momentum on the first trading session of the week after India and the US reached an understanding on resolving the logjam in implementing the India-US nuclear deal. It registered a life time high of 9029.50, however profit booking was observed on the last day of weekly trading session which was led by heavy selling in PSU banks like SBI, Bank of Baroda, Oriental Bank, Union Bank etc. Nifty February Future settled at 8887.50 with the moderate weekly gain of 43.10 points.
Sixth bimonthly monetary policy review by RBI on 3rd February will be important event to watch in near term. RBI is expected to keep its main lending rate unchanged. Auto sales data will affect the movement of auto stocks in upcoming sessions.
Technically Nifty future is looking bullish on long term charts, it may trade in range of 9100 and 8800 in near term while with the breach of its support mark of 8800, some correction can expected in it.
By Vivek Gupta, CMT – Director Research, CapitalVia Global Research Limited