Nifty Future began the week on positive note as bulls had upper hand over the bears but consolidated post the recent rally in the markets throughout the week by making all time high of 8447.90, getting help from factors like better IIP data, lower CPI and WPI Data, sharp correction in crude prices, improved growth in US and diminished possibilities of an immediate increase in US interest rates and renewed optimism on fiscal reforms. Some profit booking was seen in the market at higher levels in pharma sector on the last day of the week while buying was seen in specifically mid-cap companies and metals, infrastructure sectors.
Movement of index in near term will consistently depend on reform initiatives. Economic growth in China and Eurozone will engage the attention of the market and the remaining quarterly results will have stock-specific impact.Nifty November Future gave all time high closing at 8414.75 with the marginal weekly gain of 33.10 points.
In near term Nifty is likely to consolidation and expected to trade in 8300 – 8460 range with positive bias, having resistance at 8460 and strong support around the level of 8250.
By Vivek Gupta, CMT – Director Research, CapitalVia Global Research Limited.