Today’s market report from

Nifty on Daily charts is looking bullish. We can see that Nifty has been making lower highs since the 4th of March, 2015, and thus forming a downward sloping trendline on daily charts. The immediate resistance due to this trendline is around 7840. If Nifty crosses this resistance and sustains above it, we can expect a strong bullish movement.

The moving averages of stochastic indicators of Nifty are showing a cross-over, which indicates bearishness.

If we look at the fundamental scenario, then currently Nifty PE Ratio is hovering around 21.00, although not cheap, it cannot be considered expensive. There is room for expansion as we expect corporate earning to deliver near to consensus growth expectation of 14-15 per cent FY 17. Nifty P/B ratio is 3.24, only a move above 4.00 could be considered as overbought. So no concern in that front as well. With recent Monsoon forecast regarding expectation of rain fall which is 105 per cent above long-term average by a well known private weather forecast department is likely to be a major boost for market. Especially after a straight two years of drought for the half of India's farmlands that lack irrigation facilities.

Support:- 7600, 7540, 7400
Resistance:-7750, 7840, 8000