NIFTY ABOVE 8,800 AHEAD OF RETAIL INFLATION DATA

Market showed a range-bound movement with  positive bias as investors are awaiting CPI inflation data today. Due to a slowdown in demand on account of demonetization, the CPI inflation is likely to moderate further and it will not create much impact on RBI to change their current neutral stance. Focus will be on earnings and a revival in demand with realization growth.

                       The Nifty  has been struggling to extend its rally beyond 8,800 decisively over the last one week. The contract is facing strong resistance at 8,840. Broadly, the nifty seem to be range-bound between 8,730 and 8,840. Within this range there is a strong likelihood of it moving down towards 8,730 in the coming sessions. Traders with high risk appetite can go short at current levels. Stop-loss can be placed at 8,840 for the target of 8,745.A breakout on either side of 8,730 or 8,840 will decide the next leg of move for the contract.A fall below 8,730 can take it to 8,700 and 8,680. On the other hand, if the index futures manage to surpass 8,840 decisively, a rise to 8,865 and 8,900 is possible thereafter.