Investor advised to enter into the market

This week Nifty Future bounced back sharply from an important support around 7700 backed by better monsoon forecast, better than expected result of some large cap company along with the fact of completion two years of Mod's regime, which turns the sentiment to positive. The strength of the rally is clearly evident as market is comfortably sustain well above the 8000 mark.

We expect Nifty future to hit the level of 8250, where supply is likely to come. A break above this level the rally is likely to extend further and then the target could be 8320. Nifty Future in its daily chart has completed a head and shoulder pattern with the break out above 8000 level and this bullish pattern breakout indicates medium term trend to stay positive. Important support is at 8000 and resistance comes at 8250 and 8320 level.

In the coming weeks, key drivers for the market will be. Outcomes regarding passing of GST in forthcoming monsoon parliamentary session should put the present rally into a hold because chances of passing the same looks like a less possibility event. Along with this Fed and RBI decision regarding key monetary policies and expectation on it will also going to be important drivers for the market. The market will watch the corporate scorecard too, among the major one forthcoming results of Coal India, Reliance Infra, M&M, Tata motors is likely to keep market volatile and will decide the trend. We believe the monsoon factor is already discounted by the market as we have seen market to move above an important level of 8000 and breakout above this level indicates major shift of sentiment. So investor is advised to enter into the market because when the monsoon will hit we may see nifty to trade around 8250 or above this level

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