Nifty future witnessed high volatility during the week to extend its losses to hit its lowest closing level in more than 19 weeks. Selloff was triggered by fresh rout in Chinese market and falling crude oil prices. Market breadth indicating the overall health of the market was negative as broad based selling was seen in most of the sectors specifically dragged by banking, metals and pharma stocks.
In overseas stock markets, all global markets edged lower, with investor sentiment hit adversely as a rout in oil prices heightened worries about the global economy.
Macroeconomic data, trend in global markets, investment by foreign institutional investors (FIIs), the movement of rupee against the dollar and movement of crude oil prices and also depend on Q3 results of large cap companies like Asian paints, Kotak Bank, Reliance Industries, HCL Tech, Ais Bank, Ultratech Cement, ITC, etc. will dictate trend of the market in near term.
Nifty Future gave weekly closing at 7442.70 with weekly loss of 162.50 points.
Technically, in daily charts short term trend of nifty future is down as it has given a negative weekly close below its important support level of 7550. Thus, in near future it may test levels of 7300 – 7200 if it sustains below its resistance level of 7550 on closing basis, on upside immediate resistance is at 7550 levels.