Last week, domestic markets were merely tracking global market movements. If the trend continues, then, we may see Nifty moving towards 7758 and even 7908 levels. Nifty has strong support at 7400 (50DMA). India VIX and CBOE VIX are on the down trend indicating a positive mood for the markets. Investors can buy 7600 call options provided Nifty moves above 7604, which is the 100 day simple moving average.

Last week, the Industrial Production Data of the country came out, which saw a third consecutive month of decline led by the manufacturing sector. The IIP data for January 2016 was at (-) 1.5 per cent and the December's figure were revised to (-) 1.2 per cent. The manufacturing sector slipped to (-) 2.8 per cent against (-) 2.4 per cent on month on month basis. For the period of April - January the data was at 2.7 per cent against 3.1 per cent on yearly basis. The electricity sector stood at 6.6 per cent as compared to 3.2 per cent on monthly basis.