GST and Q1 earnings to remain in focus for market this week
Nifty started the week with cautious note just before the start of two major central banks meeting of US and BOJ and domestically keeping an eye on how things progress in parliament regarding GST issue.
Nifty started the week with a cautious note just before the start of two major central banks meeting of US and BOJ and domestically keeping an eye on how things progress in parliament regarding GST issue. Most of the trading session for the week market remained positive and was in strong trend . Despite Several times, it attempted to break above the key level of 8700. At the end, Nifty ended tad below the same level at 8691 up by 137 points on a weekly basis.
Market movement in coming week will depend on quarterly result announcement of some of the major companies like VRL Logistics Ltd, Tata Communication Ltd, Voltas Ltd and Titan. Along with this activity of Foreign portfolio investor who stayed net buyers till date is going to be key. The investor will keep a watch on India Manufacturing PMI data , scheduled to come on Monday along with infrastructure output year on year data.
GST in parliament which is now very likely to pass as the cabinet approved amendments to consider the suggestion of opposition and congress coming to an agreement with the ruling BJP, the bill is going to be finalized in parliament on early of the next week. Shares like Gati, VRL Logistics, and Allcargo should be in the watch as big movement is likely to come if GST becomes reality .
Technical setup of the market remained bullish and is likely to improve once Nifty manages to trade above 8700 level consistently. Momentum indicators although slightly overbought, no signal yet visible, indicating the market is topping out. Holding above the 8500 is going to be key for the market. A break below this level we may see short term correction to fuel by profit booking. Our mid-term trend outlook is still very strong as long as the market remained above 8250. Overall its seems sentiment is extremely positive and we expect the market to move higher.
Key support from medium-term perspective is at 8500 and 8250. Resistance is at 8700-8720 level.
By Rohit Gadia, Founder & CEO, CapitalVia Global Research Ltd.
