Weekly Wrap: – The market declined sharply last week with the Nifty falling below the psychological 8,000 mark. The broad market also depicted weakness. The sell off was triggered by outflow by foreign portfolio investors (FPIs). The concern of sub-normal rainfall was one of the major reasons for outflow by FPIs. Monsoon is a vital factor that will determine the Reserve Bank of India (RBI)’s future course of action on interest rates. Firm crude oil prices also spooked investors. Rise in global crude oil prices and a weakening rupee are major worries at hand for the RBI and may impact interest rate cut decision in coming months. The Nifty fell 131.80 points or 1.62% to settle at 7,982.90. Macro-economic data, investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar and crude oil price movement will dictate near term trend on the bourses. The government will release the inflation data based on wholesale price index (WPI) for May 2015 on Monday, 15 June 2015.
On The F&O Front : -Weekly data shows in the past trading sessions, we have seen strong Call writing in 8200/8100/8000 strikes & major Put build up at 8000/7900/7800 strike indicating a negative bias for market, in the near term.
On Technical Front: – On Nifty weekly chart strong support 7930 is seen at . If it breaks with high volume, more bearishness is expected.
Nifty Directional: – Sell Nifty Future Below 7925 Target 7875, 7825 Stop Loss 8025.
Time Frame: – 1 Week