Market Next


January 08
16:20 2017

On Friday Nifty closed shade lower than below its crucial support level at 8249.  Therefore Nifty may remain sideways in a range bound manner in the coming days at least in beginning of the week.  The range will be in between 8315-8113.  If there is decisive move above or below these levels can give us a major direction.  According to the technical charts down is very much limited. On the other hand Nifty has immediate resistance at 8422 and 8500.

Last week we saw good amount of selling in front line IT stocks, the trend may continue in the days to come.  Nifty IT index on Friday closed at 10110 and it has support only at 9953 and has resistance at 10210.  The latest bill reintroduced in US to curb the use of H-1B visa has negative impact on Indian IT companies.  According to reports the latest bill requires workers on the H-1B visa pay a minimum of $1,00,000 up from $60,000.

Dow Jones is likely to break its previous highs in the day to come because of its strong job market.  The jobless claims fell 28000 in the last week, dropping to a nearly 43 years low, despite US private sector added 1,53000 hobs in December which is tad lower than expectation.  The latest indications from US, UK , Japan and China are suggesting sustained job creation and strong economic growth may sustain in the months to come which will boost other emerging markets too.

Metal stocks are likely to support the market next week due to good demand from China after its service sector expanded at a faster than expected lines.  Going forward Nifty metal Index will get support at 2706 and having resistance at 2860.  Investors can start investing in this sector for a short term perspective.

Banking stocks are not very bullish but it can lend support to the market in the near term at least for some days.  Banking Nifty has strong support at 18085 and has resistance at 18525; we can expect nearly 300 points growth in Banking Nifty in the days to come.  It is prudent to book profits when the banking Nifty comes very close to 18525 due to its technical set up.

US balance of trade, Manufacturing Pay roll, nonfarm pay roll and unemployment rate are due next week.  Industrial production, manufacturing production, inflation, WPI manufacturing, WPI food, WPI fuel, WPI inflation are the key data’s expected from domestic front.  From the Euro zone Balance of trade, consumer confidence, business confidence, unemployment rate, industrial production and inflation rates will come out next week.

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