Nifty 50 had ended last week up by 1.27 per cent at 7,963.20, a four-week high. But the rollovers of the December series were below average indicating lacklustre movement for the first few days of this week.
“Markets are expected to be range-bound with some amount of profit-booking to happen though the under current is still strong,” said Jimeet Modi, CEO, SAMCO Securities.
The market will await cues from mmacroeconomic data (Nikkei India Manufacturing PMI and Services PMI), trend in global markets, investment by foreign institutional investors, movement of rupee against dollar, movement of crude oil prices and start of Q3FY15 results.
There are monetary policy meetings both in the US and India in a month’s time. Also, market will start building hopes on the budget and the reform agenda of the government for the year 2016.
Technically, Nifty may test the levels of 8,100 if it crosses its psychological level of 8,000 on closing basis. If it breaches its immediate support level of 7,900, it may show further correction till 7,850-7,800 level, points out Vivek Gupta, CMT – Director Research, CapitalVia Global Research Ltd.