By Mr. Vivek Gupta [CMT – Director Research, CapitalVia Global Research]
Week begun with the gap down opening and key benchmark index Nifty future recouped its intra-day losses . It registered weekly high of 7952 on Tuesday, 14th October taking positive cues from easing of CPI inflation at 6.46% & WPI inflation at 2.38%, but due to weak global markets, it traded with the negative sentiments and extended losses till the level of 7752.20 in remaining trading session. Nifty ended the week at 7815 with the net loss of 71.80 points ,as foreign portfolio investors were net seller this week also.
Market movement in near term will depend upon the result of election held in Maharashta & Hariyana. Election commission will unveil results on Sunday 19th October,2014. Few major companies like LIC Housing Finance, Ultratech Cements, Exide Industries, Hindustan Zinc, Idea Cellular Ltd., ACC, Biocon, JSW Steel Limited, Asian Paints Ltd., HDFC, Kotak Mahindra Bank, ITC Ltd., Indian Overseas Bank, Jsw Energy, Power Grid will report their second quarter (July – September 2014 ) results in next week.
Technically, primary trend of the Nifty future is bullish, it is showing correction from past few weeks. In near term range bound movement can be observed in it. Resistance for Nifty future is at 7955, crossing of this can result in upside movement in index, while with the breach of its next support level of 7700 further correction can be seen.