Market movement will depend on Foreign Reserve and bank loan growth data: CapitalVia Global Research

In this week Nifty Future initially showed a positive movement however becomes extremely volatile and traded in a broader range of 7700-7800. At the end it ended at the lower end of the range It has breached the important level of 7775 and is trading above the important support of 7700.

Going forward if market breaches the support of 7700 we might expect a further bearish movement till around 7650. The important resistance zone of Nifty is 7860-7940.Technically The RSI is below 50 which supports the bearish view. The d% moving average of the stochastic indicator has crossed-over the k% moving average from the downside. This supports the bearish view too.

In the coming week, the market will watch the corporate scorecard. Forthcoming results like LT, Ashokley, SBIN, Tatacomm, ONGC might keep market volatile and will decide the trend. Along with this market will keep an watch on Foreign Reserve and bank loan growth data will be release in next week. Expected Foreign Reserves are $363.4 Bn. If Foreign Reserves are greater than that we can expect it to affect Nifty positively but in case it isn't, we can expect a further bearish movement.

By Rohit Gadia, Founder & CEO, CapitalVia Global Research Ltd.