Bullish momentum likely to continue, deploy 'buy on dips' strategy say experts

Among the key events, earnings season starts next week with IT major, TCS results scheduled on January 8. On the economic front, participants will be eyeing the Markit Manufacturing PMI and Services PMI data on January 4 and 6 respectively.

January 04, 2021 / 08:17 AM IST
Sensex
The market kicked off the new calendar year 2021 on a positive note with Nifty managing to end above 14,000 levels for the first time. At close, the Sensex was up 117.65 points or 0.25% at 47,868.98, and the Nifty was up 36.70 points or 0.26% at 14,018.50. Here's what experts have to say about this week:
Vinod Nair, Head of Research at Geojit Financial Services | With a hope that 2021 will be a year of economic recovery, market is touching all-time highs on a daily basis. Stocks across sectors cheered with mid & small caps at the forefront. The combined effect of foreign inflows and real earnings growth can keep the market rallying going forward.
Vinod Nair, Head of Research at Geojit Financial Services | With a hope that 2021 will be a year of economic recovery, the market is touching all-time highs on a daily basis. Stocks across sectors cheered with mid & smallcaps leading from the front. The combined effect of foreign inflows and real earnings growth can keep the market rallying going forward.
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities | In spite of lesser participation from FIIs, the Nifty-50 gave a strong closing on the monthly expiry day. The robust FII flows of ~ USD 7.3 bn in December and strong closing on expiry indicates bullish rollovers for January expiry. The macro numbers like GST collection and current account surplus are also supportive from an economy perspective. Expect the Nifty-50 to go somewhere mid way of the 14,000 to 15,000 range in January.
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities | In spite of lesser participation from FIIs, the Nifty50 gave a strong closing on the monthly expiry day. The robust FII flows of USD 7.3 billion in December and strong closing on expiry indicates bullish rollovers for January expiry. The macro numbers like GST collection and current account surplus are also supportive from an economic perspective. Expect the Nifty50 to go somewhere midway of the 14,000 to 15,000 range in January.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going ahead, the market momentum seen in the last couple of months is likely to continue on the back of strong global cues, sustained inflows, and improving macros trends. The December quarterly results and Union Budget around 1st February will be some of the key event for the market. The December quarterly numbers are expected to be much better due to strong festival as well as post festive demand. As the long term market structure remains positive, we would advise investors to adopt Buying on Dips strategy to accumulate quality stocks.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going ahead, the market momentum seen in the last couple of months is likely to continue on the back of strong global cues, sustained inflows, and improving macros trends. The December quarterly results and Union Budget around February 1 will be some of the key events for the market. The December quarterly numbers are expected to be much better due to strong festive as well as post-festive demand. As the long-term market structure remains positive, we would advise investors to adopt 'Buying on Dips' strategy to accumulate quality stocks.
Ajit Mishra, VP - Research, Religare Broking | Among the key events, earnings season starts next week with IT major, TCS results scheduled on January 8. On the economic front, participants will be eyeing the Markit Manufacturing PMI and Services PMI data on January 4 and January 6 respectively. The overwhelming foreign fund inflow combined with the favourable signals from the economic front is helping the markets to inch higher. Having said that, the movement in the benchmark lacked decisiveness last week and we may see some profit-taking or consolidation ahead. Amid all, we feel traders would continue to find opportunities across sectors so the focus should be the selection of stocks. Also, it’s prudent to keep the leveraged positions partially hedged, to minimise the risk of knee-jerk reaction like we saw in mid-December.
Ajit Mishra, VP - Research, Religare Broking | Among the key events, earnings season starts next week with IT major, TCS results scheduled on January 8. On the economic front, participants will be eyeing the Markit Manufacturing PMI and Services PMI data on January 4 and 6 respectively. The overwhelming foreign fund inflow combined with the favourable signals from the economic front is helping the markets inch higher. Having said that, the movement in the benchmark lacked decisiveness last week and we may see some profit-taking or consolidation ahead. Amid all, we feel traders would continue to find opportunities across sectors so the focus should be the selection of stocks. Also, it’s prudent to keep the leveraged positions partially hedged, to minimise the risk of knee-jerk reaction like we saw in mid-December.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | Technically, the index has formed breakout continuation formation and the texture of the chart suggest uptrend likely to continue in the near term. We can expect further upside activity towards the 14,300 or 14,400 levels. On the downside, the Nifty would find big support between 13,800 and 13,700. The focus should be on commodities, technology and NBFCs.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | Technically, the index has formed breakout continuation formation and the texture of the chart suggest uptrend likely to continue in the near term. We can expect further upside activity towards the 14,300 or 14,400 levels. On the downside, the Nifty would find big support between 13,800 and 13,700. The focus should be on commodities, technology and NBFCs.
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors | GANN square arc resistance and Fibonacci projection levels standing around 14300. This level also coincides with the potential target suggested by the Elliott wave count of the current market structure. As per Elliott wave, Nifty is progressing in wave ‘III’ of wave ‘V’. Moreover line of parity, 5 weekly SMA and swing low are standing around 13650 marks which can act as crucial support in case of any minor correction. The majority of the oscillator indicators are placed in overbought zones suggesting some minor correction in the coming days. Positional traders should maintain buy on dips strategy keeping 13650 levels as an early sign of trend reversal.
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors | GANN square arc resistance and Fibonacci projection levels standing around 14300. This level also coincides with the potential target suggested by the Elliott wave count of the current market structure. As per Elliott wave, Nifty is progressing in wave ‘III’ of wave ‘V’. Moreover, the line of parity, 5 weekly SMA and swing low are standing around 13650 mark, which can act as crucial support in case of any minor correction. The majority of the oscillator indicators are placed in overbought zones suggesting some minor correction in the coming days. Positional traders should maintain 'buy on dips' strategy keeping 13650 levels as an early sign of trend reversal.
Rakesh Patil
first published: Jan 4, 2021 07:57 am

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