Market edged lower in the week ended 20 March 2014, weighed by the recent selling of Indian stocks by the foreign portfolio investors (FPIs). The Sensex shed 242.22 points or 0.84% to settle at 28,261.08. The Nifty dropped 76.85 points or 0.88% to settle at 8,570.90.Among macro data, the latest data showed that the annual rate of inflation based on monthly wholesale price index (WPI) stood at minus 2.06% (provisional) in February 2015 as compared to minus 0.39% (provisional) in January 2015.
On global front, the Federal Reserve on Wednesday, 18 March 2015, moved a step closer to hiking rates for the first time since 2006, but downgraded its economic growth and inflation projections, signaling it is in no rush to push borrowing costs to more normal levels. The market may remain volatile next week as traders roll over positions in the futures & options (F&O) segment from the near month March 2015 series to April 2015 series. The near month March 2015 derivatives contract expire on Thursday, 26 March 2015.
On The F&O Front : – Weekly data shows in the past trading sessions, we have seen strong Put build up in 8800/8700/8600 strikes & major Call writing in 8700/8600/8500 strikes indicating a negative session for market, in the near term.
On Technical Front: – On Nifty weekly chart strong support is seen at 8575 if it breaks with high volume, more bearishness is expected.
Nifty Directional: – Sell Nifty Future Below 8560 Target 8510, 8460 Stop Loss 8660.
Aurom Investment Advisory Services
Aurom Investment Advisory Services 