After range-bound movement at start of the week, Nifty Future extended gains on the last day of the week by making all time high of 8512.90 as bulls were on a roll. The reasons behind this included getting help from factors like banking stocks gaining across the board specially after Kotak-ING Vysya merger deal, private banks hitting all time highs like ICICI, Kotak, Yes Bank, and latest comments from European Central Bank (ECB) President Mario Draghi fired up expectations for aggressive easing measures from the ECB and fibally, China’s central bank injected funds to ease a shortage of cash in the financial system.
In the US, both the S&P 500 and the Dow Jones Industrial Average to record closing high, followed by some upbeat economic data and on better-than-expected earnings from retailers. Movement of index in near term will on consistently remain on further reform initiatives which are about to be taken in the upcoming winter session starting next week from Monday and crucial OPEC meeting next week to overcome the cartel and internal resistance to trim crude oil output.
Nifty November Future hitting fresh highs gave closing at 8488.80 with the weekly gain of 72.15 points.
In near term Nifty is likely to continue its uptrend with overall breadth of the market is positive and it is expected to face strong resistance around the levels of 8550 on the upside having immediate support around the level of 8350.
By Vivek Gupta, CMT – Director Research, CapitalVia Global Research Limited.
