By Vivek Gupta, CMT – Director Research [CapitalVia Global Research Limited]
New Delhi:Trading for the week started on a weak note as key benchmark indices dropped on Monday, 15 September 2014, after data showing a muted 0.5% growth in industrial production in July 2014 raised doubts about economic recovery. It dropped down till the levels of 7952, later it jumped towards the end of the week's trading after the US Federal Reserve at the end of a two-day policy meeting on Wednesday, 17 September 2014, maintained a commitment to keep US interest rates near zero for a considerable time. It announced a further $10 billion reduction in its monthly bond buying program. It is expected that FED will end the quantitative easing program by the end of October Meanwhile, the Indian and Chinese governments signed a five-year trade and economic co-operation pact and a railway co-operation pact.
The broader 50-share Nifty shut shop at 8,129.90; on a flat note, as FIIs pumped funds on Fed's pledge to retain rates at low levels for a considerable time and rising optimism over India's trade ties with China.
Technically Nifty Future is trading in bullish trend and managed to bounce from its support level of 7950. In coming trading session it may continue its bull run with the crossing of its resistance mark of 8175 and may register a new high, while on the other side if it reaches its support level then some correction can be seen.
In near term market movement will depend upon fourth bi-monthly monetary policy review on 30th September 2014, Where it is expected that RBI will continue to exhibit status quo stance on interest rates. Although Wholesale Price Index based inflation lower at 3.74% in the August month from 5.19% of previous month.