Healthy buying in most sectors, including auto, bank, metal, pharma, and oil & gas, pushed the Indian market into unchartered territory in the week ended September 3.
Equity benchmark the Sensex jumped 2,005 points, or 3.57 percent, to close at 58,129.95, while the Nifty50 clocked a gain of 618 points, or 3.70 percent, to end at 17, 323.60.
Investors and traders bought across the board as the second-rung midcap and smallcap indices, too, posted strong gains.
The Nifty Midcap 100 index rose nearly 5 percent and the Smallcap 100 index climbed 4 percent.
The coming week will be truncated as the market will be closed on September 10 for Ganesh Chaturthi.
The market is expected to see the continuation of the rally even as global cues and macro numbers will dictate the trend.
Here's how top market analysts foresee the market moving in the coming week:
Expert: Siddharth Khemka, Head–Retail Research, Motilal Oswal Financial Services
The market is likely to continue with its positive momentum as economic recovery and vaccination continue.
Technically, the Nifty formed a bullish candle on the daily and weekly scale and is now expected to extend its move towards 17,500-17,700. On the downside, support is seen at 17,200-17,050 levels.
Strong liquidity and positive global cues are likely to support the domestic market. However, valuations are also moving beyond comfort zones and could lead to bouts of profit-booking and an increase in volatility.
Largecaps offer a better margin of safety in the current environment and could continue to remain in focus in the near term. The European Central Bank’s monetary policy meeting will be in focus during the week for some clarity on the stimulus tapering talk.
Ajit Mishra, VP Research, Religare Broking
The pace of vaccination and other COVID-related updates will also be in focus. Global markets have played a supportive role in the recent surge and their performance would be equally important to maintain the prevailing bias.
We are eyeing 17,500 in the Nifty, however, it may see some pause or consolidation first. In case of a dip, the 17,200-17,050 zone will act as a cushion.
The recent trend of rotational buying across sectors is likely to continue in the coming week too.
Though the broader indices have also witnessed a decent surge of late, we recommend remaining cautious as any profit-taking in the market may again derail the momentum. In short, align your positions according to the trend and continuing with the “buy on dips” approach.
Rahul Sharma, Co-Founder, Equity99
We are bullish on the long term, however, after such a move the market may see some correction.
Investors are advised to keep trailing stop losses to their positions. Allocations are now increasingly shifting towards quality stocks where the earnings visibility and the balance sheet strength are strong.
The level of 17,225 will act as immediate support for the Nifty. A break can drag the index to 17,100 to 17,000 levels.
On the upper side, 17,400 will act as resistance. After its breach, 17,525 and 17,575 are possible. Automobiles, power, IT and metals are the sectors to focus on for the next week.
Santosh Meena, Head of Research, Swastika Investmart
Technically, the Nifty ended the week with a bullish white long marubozu candlestick formation that may lead to a further upside, where 17,520 is the immediate target and 17,700 the next level.
Though the momentum indicator RSI is in overbought territory on both daily and weekly timeframes, the market can remain overbought a little longer. On the downside, 17,200-17,140 is an immediate demand zone to buy any dip, while 17,050-17,000 will be the next support area.
Gaurav Udani, Founder and CEO, ThincRedBlu
The Nifty is now headed for 17,375 and 17,400 in the coming trading sessions. Levels of 17,200 and 17,280 will act as strong support.
Traders can consider buying on every correction, with strict stop loss as long as the Nifty trades above 17,150. Correction can be used to buy with strict stop loss.
Samco Securities Research
Economic data such as manufacturing output and industrial production can drive investor sentiment in the coming week. In the absence of any other major event, Indian indices are expected to mirror global cues and move in tandem with foreign bourses.
With a largely positive outlook, profit-booking may be seen in stocks running ahead of their fundamentals. Investors are advised to ride this bull rally with fundamentally resilient stocks.
On the technical front, the Nifty formed a big bullish candle on the weekly timeframe and broader indices, too, participated in this rally.
The Bank Nifty is also trading near its all-time high level. It may act as a make-or-break level, as bullish movement can take the Nifty even higher.
But traders should note that the levels are overbought and mild dips would be smarter entries. The price zone around 16,600 may act as immediate support on declines.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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