News

Indian market forcast

by By Vivek Gupta, CMT , Director Research, CapitalVia Global Research Limited 16 Jan 2015, 09:17 pm

Nifty Future opened on a positive note and saw some intraday correction in earlier part of the week but mid week Reserve Bank of India's (RBI) surprise announcement of a cut in its main lending rate viz. the repo rate by 25 basis points helped it to attain its highest closing level in more than six weeks getting help from factors like RBIs surprise announcement of a rate cut which led to rally in rate sensitive sectors like realty, auto and bank stocks which helped Maruti, Yes bank, Axis bank scaled fresh new highs and good third quarter numbers declared from Yes bank and TCS.

In overseas markets, European stocks reversed its gains after Switzerland's central bank the Swiss National Bank shocked global markets by ditching its currency ceiling against the euro and cutting its deposit rate to negative 0.75. In the foreign exchange market, the rupee strengthened past 62 against the dollar after the Reserve Bank of India's (RBI) surprise announcement of a cut in its main lending rate.

Movement of index in near term will be consistently remains on further reform initiatives to be taken by the government and also depend on Q3 results of large cap companies like ITC, HUL, Colgate, Ultratech Cements etc.

Nifty January Future gave closing at 8536 with the weekly gain of 220.50 points. In near term Nifty likely to remain volatile but is expected to continue its uptrend as overall breadth of the market was positive having resistance around the levels of 8670 on the upside while having immediate support around the level of 8370.