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Nifty is likely to continue its correction: CapitalVia Global Research Limited

by IBNS 12 Dec 2014, 07:00 pm

Mumbai, Dec 12 (IBNS) After last week consolidation Nifty Future fell sharply amid weakness in Asian and European markets hitting its lowest closing level in almost six week, as market breadth indicating the overall health of the market was weak, leading sectors which drifted market on the down side were specifically led by IT, Metal and Infrastructure sector and also Indian rupee edged lower against the dollar on speculation an improving US economy will strengthen the dollar and damp demand for emerging-market assets.

In the market forecast, Vivek Gupta, CMT – Director Research, CapitalVia Global Research Limited said: “In overseas markets, European stocks edged lower before the European Central Bank reveals take-up of its lending auction, which could provide clues on the central bank's policy decisions. US stocks suffered their worst declines in about two months in this week as a renewed slump in oil prices slammed energy companies while investors fretted that a stunning drop in oil prices signals a more worrisome global-economic slowdown.“

“Movement of index in near term will on consistently remain on further reform initiatives to be taken in the ongoing winter session, IIP, CPI & WPI data expected to be announced later in the evening,” Gupta said.

“Nifty December Future gave closing at 8276.70 with the weekly decline of 305.85 points. In near term Nifty is likely to continue its correction as overall breadth of the market is negative and having resistance around the levels of 8380 on the upside while having immediate support around the level of 8200,” Gupta said.