Nifty Future continued pre-budget rally extending previous week’s gains to attain its three weeks high but some profit booking was seen from higher levels in last day of the week as high intraday volatility was witnessed throughout led by the factors like after news filtered in that Greece has submitted a formal request for a loan extension, buying seen in specifically pharma and metal sectors like JSPL, JSW Steel, Hindalco after bagging coal blocks, robust third quarter results posted by HDFC ltd.
In overseas markets, European shares edged lower as investors awaited the outcome of a meeting of euro zone finance ministers later in the day, to discuss Greece’s request of a loan extension after Germany yesterday, 19 February 2015, rejected the Greek government’s proposal. Stocks in Japan and Indonesia edged higher as most other Asian markets remained closed for holiday. US stocks ended mostly lower as investors grappled with a drop in oil prices and a continued impasse between Greece and its creditors over loans.
Movement of index in near term will be remains on further reform initiatives to be taken by the government in the upcoming budget on 28th February 2015.
Nifty February Future gave closing at 8846 with the weekly marginal gains of 4.45 points.
In near term Nifty is likely to remain volatile next week as February contract expires but expected to continue its uptrend having resistance around the levels of 8930 on the upside while having important support around the levels of 8700.
By: Vivek Gupta, CMT – Director Research, CapitalVia Global Research Limited.