The Indian market witnessed strong volatility during the week gone by, but eventually settled flat for the week.
After falling 3 percent at the beginning of the week on the new strain of COVID-19, both Sensex and Nifty recouped losses and closed flat for the week ended December 24.
The Nifty50 broke the 7-week winning run and closed marginally lower for the week ended December 24, and as we head into the last week of the year 2020, experts advise caution and stock-specific investing.
The S&P BSE Sensex closed flat but with a positive bias while the Nifty50 fell 0.08 percent for the week ended December 24 while the S&P BSE Midcap index fell 0.7 percent, and the S&P BSE Small-cap index was down 0.53 percent in the same period.
Will the trend continue or the will market hit the 14,000-mark in the coming week? Here's what top experts say:
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities
The week gone by saw moderation inflows from both FIIs and DIIs. We can expect muted FII activity in the next week also due to the year-end phenomenon but expect activity to pick up sharply from the first week of January.
Most probably, Nifty should take support at 13,000 levels with likely break out above the 14,000 level sometime in January.
Nirali Shah, Senior Research Analyst, Samco Securities
With the new year at our doorstep, markets are likely to trade in a rangebound manner with 13,750-13,800 levels on the upside and 13,100-13,200 levels on the downside.
Going ahead, bourses may witness enhanced volatility and dry up of liquidity as the new margin norms set-in.
By and large, investors are advised to remain invested and ride the momentum, however, one should remain skeptical before aggressively adding a tidy sum of new monies when markets are already elevated in the short term.
Investors, in fact, should keep an eye on private-sector lenders that are currently consolidating and can be accumulated on minor dips. Selective auto and cement stocks can also be added to an investor’s portfolio.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
On a weekly basis, the market has formed a 'hanging man' formation. Generally, as per theory, such type of formation invites worries if it is at the top of the rally.
In the excessive bullish market, said formation acts as a bullish continuation. For the next few days, traders need to be extra cautious, as the market has entered the zone of volatility.
It would keep the market swinging between the broader range of 13,900 and 13,400 levels.
The break of the trading range would stabilise the market and would start trending in that direction.
The flow from the foreign institutions slowed during the week gone by. However, it could be due to a shorter week and ahead of the eve of Christmas. In the coming week, traders are strictly advised to be stock-specific.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
The market is likely to maintain its positive momentum as the covid cases in India are consistently declining while the economy is showing recovery month after month.
However, emerging risks pertaining to new coronavirus strain may limit the upside. The monthly F&O expiry next week could add to the volatility.
The long term market structure remains positive. Technically too, Nifty formed a Bullish candle on a daily scale and making higher lows from the last three sessions.
Now it has to continue to hold above 13600 zones to witness a fresh rally towards a new lifetime high of 13850- 14000 zones while on the downside major support exists at 13500-13300 levels.
We would advise investors to accumulate quality stocks on dips while traders should look at booking profit intermittently.
Vinod Nair, Head of Research at Geojit Financial Services
For the coming week, concerns regarding the fresh case of the virus will remain in the limelight along with the development of the Brexit deal.
Investors should stay focused on quality sectors and counters and also watch the trend of FII inflows, which is the main factor of the recent rally. No eventful data and announcements are expected next week.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.