Domestically, the earnings from corporate banks have been positive driving the market forward.
The market stayed in the green last week owing to an improvement in bilateral relations between China and the US. The global market also responded positively. Domestically, the earnings from corporate banks have been positive driving the market forward, said Dinesh Rohira, Founder & CEO, 5nance.com
The price of crude oil has gone down from $86/bbl to $72/bbl in the global markets, whereas the rupee has also improved. These developments have pushed the market upwards.
There has been significant short covering. Nifty took a support at 10,100 on account of 100-DMA. On the upside, it has breached 20-DMA daily charts, which is at 10,420, said Rohira.
We are in the market where there has been significant volatility with a movement of 3-4 percent every week. We need to brace for a volatile condition in the coming week as well, he said.
PSU banks, realty and auto sectors performed handsomely last week. On the weekly chart, RSI has moved to 51. So we have a positive view for the coming week. However, we would be cautious, said Rohira. NBFCs are still not out of the woods and hence we need to cautious, he warned.We have an upside target of 10,690 and then to 10,700-10,720. The support is placed at 10,370. Be stock-specific in this week, Rohira asserted.