It will be prudent to retain a neutral stance on the market till the index takes a dip or consolidates for a couple of sessions, says Mazhar Mohammad of Chartviewindia
Considering the bullish mood, upcoming week can be approached with a low-risk strategy like Modified Call Butterfly in Nifty.
The 6.5-7 percent is doable for FY23. FY24 growth will depend a lot on how recession or slower growth shapes up in US / developed world. A lot of probabilities out here.
Technically, since its listing, PB Fintech remained in a gradual decline, however, in the last few months the pace of the fall flatten, which is resulting in a positive divergence. It is an indication of the change in the prevailing trend.
The IT space may remain an underperformer and a weakness in this index may contribute to the resumption of the downswing.
Newgen Software Technologies rallied 11 percent to Rs 411.15, the highest closing level since May 10 and formed robust bullish candle with strong volumes on the daily charts, while breaking the long downward sloping resistance trendline adjoining January 18, May 4 and July 20 this year.
Finolex Cables has been forming higher tops and higher bottoms on the daily chart. It has registered fresh 6 months high with rising volumes.
The future trajectory of FII flow, to a large extent, depends on the inflation in US and in India. Higher interest rates in the US typically lead to flows moving to the world's largest economy, resulting in the strengthening of the US dollar at the cost of emerging markets like India.
Considering the recent price action, traders are advised not to carry aggressive overnight bets for a while and should adapt the strategy to follow one step at a time and respect levels on either side.
Markets are trading at slight premium to long term averages on FY24 consensus earnings. Hence it should consolidate at current levels before resuming the uptrend.
Systematic Risk is a risk posed by outside factors affecting country or sector as a whole (policy decisions, interest rates, geo-political risks)
Except for resource companies, i.e. producers of commodities and crude oil, most of the other sectors should report strong revenue and earnings growth over the next several years. Demand is likely to remain strong in the near to long-term for Indian companies.
As long as the index holds the previous bullish gap zone of 17,566-17,632, the uptrend is expected to continue till 17,800-17,900-18,000, experts said.
One reason is that FIIs have stopped relentless selling and are now turning buyers, says Santosh Joseph. In fact, he says as time passes, more and more FIIs may come back and even the volumes and investments may increase.
Indraprastha Gas climbed 7.5 percent to Rs 408.1, the highest closing level since January 21 and formed large bullish candle on the daily charts with strong volumes for third consecutive session, following high wave kind of candle formation.
"As per the short term chart pattern, we feel the index will make an attempt to reach its resistance of 17,800 followed by 18,115. Our bullish view shall be negated if we see prices sustaining below 17,350 level," said Vidnyan Sawant, AVP - Technical Research at GEPL Capital
The Nifty50 opened higher at 17,712 and hit a day's high of 17,719, but overall the index remained in a tight range on the higher side, before closing with 124 points gains at 17,659.
Rahul Singh, chief investment officer-equities, Tata Mutual Fund expects the rupee to remain in the 79-80 per dollar range and take broader cues from movements in the dollar Index.
Tata Chemicals share price jumped 12.2 percent to Rs 1,074, the highest closing level since October 19, 2021. The stock had a robust gap up opening and large bullish candlestick pattern formation on the daily charts with significantly higher volumes. It has decisively broken the long down sloping resistance trend line, adjoining October 18, 2021 and May 5, 2022, may be indicating bullish phase. Now the stock is around 7-8 percent away from its record high of Rs 1,158.
Tata Motors is in 'higher top higher bottom' formation on the daily chart which shows an up trend. Besides, the price has taken support at the 200-day moving average before the recent rally, said Rupak De of LKP Securities
Short-side traders should remain neutral and long-side players should keep a stop-loss below 17,440, Mazhar Mohammad of Chartviewindia has said
We believe supply side disruptions, geopolitical tensions, commodity prices & improving domestic demand conditions pose risks to inflation outlook, while the growth seems to be fairly supported by domestic factors.
August has got off to a good start, but evidence is needed to show that this trend is more structural than cyclical
BASF India share price gained 5.4 percent to close at Rs 3,089.1, the highest closing level since March 31, 2022 and formed big bullish candle with large volumes on the daily charts. Also it has broken the long downsloping resistance trend line (adjoining August 11, 2021 and October 18, 2021) on Monday.
Puravankara has broken out on the daily chart on August 5, where it closed at highest level since July 25, 2022. Short term trend of the stock is positive as it is trading above its short term important moving averages.