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Earnings, inflation, China GDP data on investors' radar this week; Nifty may move to 16,500: Experts

In the coming week, participants will first react to the TCS and Dmart numbers. Besides, macroeconomic data viz. IIP and CPI on July 12 and WPI on July 14 will be in focus, says Ajit Mishra, VP - Research, Religare Broking.

July 11, 2022 / 10:54 AM IST
Stock Market Today:
Indian equity market regained the lost momentum and rose 3 percent during the week ended July 8, tracking positive global cues, good monsoon. Reduced FIIs selling and falling commodities prices also helped the sentimetn. For the week, BSE Sensex advanced 1,573.91 points (2.97 percent) to close at 54,481.84, while the Nifty50 climbed 468.55 points (2.97 percent) to settle at 16,220.6 levels.
Ajit Mishra, VP - Research, Religare Broking | In the coming week, participants will first react to the TCS and Dmart numbers. Besides, macroeconomic data viz. IIP and CPI on July 12 and WPI on July 14 will be in focus. Apart from the domestic factors, global cues like the performance of the US markets, crude movement, etc will remain on the radar. On the earnings front, stocks like ACC, HCL Technologies, Jindal Steel and Power, Mind Tree, Tata Elxsi, Federal Bank, and HDFC Bank will announce their numbers during the week along with several others. The last three weeks of the rebound have certainly eased some pressure but cues are still mixed, which continue to trigger erratic swings in between. Apart from the US recession worries, participants should brace themselves for volatility owing to the earnings. Amid all, indications are favourable for a further rebound in the index and the Nifty could test the 16,500 zone while the 15,650-15,900 zone would provide the cushion, in case of any dip. We reiterate our preference for auto and FMCG pack and suggest nibbling selectively in the banking and financial space. On the flip side, while we may see some rebound in the energy and metal pack too, the overall structure still looks weak to us. Participants should align their positions accordingly without losing focus on risk management.
Ajit Mishra, VP - Research, Religare Broking | In the coming week, participants will first react to the TCS and Dmart numbers. Besides, macroeconomic data viz. IIP and CPI on July 12 and WPI on July 14 will be in focus. Apart from the domestic factors, global cues like the performance of the US markets, crude movement, etc will remain on the radar. Indications are favourable for a further rebound in the index and the Nifty could test the 16,500 zone while the 15,650-15,900 zone would provide the cushion, in case of any dip. 
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities | Technically, on weekly charts the Nifty has formed a long bullish candle and has also surpassed the short term resistance of 16000. In the short term now, 16000 and the 50-day SMA (Simple Moving Average) would be the key support levels to watch out for. The short term texture of the market is positive but slightly overbought. Hence strong possibility of range bound activity is not ruled out in the near future. On the higher side, 16300/54800 and 16450 would be the key resistance zone, whereas 16100 and 16000 could be the sacrosanct support levels for the market.
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities | Technically, on weekly charts the Nifty has formed a long bullish candle and has also surpassed the short term resistance of 16000. The short term texture of the market is positive but slightly overbought. Hence there is a strong possibility of range bound activity. On the higher side, 16300/54800 and 16450 would be the key resistance zone, whereas 16100 and 16000 could be the sacrosanct support levels for the market.
Palak Kothari, Senior Technical Analyst at Choice Broking | On the technical front, the Nifty has been sustaining above the upper band of rising wedge formation which suggests strength for next day. Furthermore, the index has formed a bullish candle on a weekly time frame which suggests an upside rally. Nifty has given closing above 21 & 50-DMA which points out strength for next trading session. The Nifty may find support around 16100 levels while on the upside 16350 may act as an immediate hurdle crossing above the same can show upside rally. Overall, stock specific moment has been observed sustained above 16200 level can open the gate for 16500 levels.
Palak Kothari, Senior Technical Analyst at Choice Broking | On the technical front, the Nifty has been sustaining above the upper band of rising wedge formation which suggests strength for next day. Furthermore, the index has formed a bullish candle on a weekly time frame which suggests an upside rally. Nifty has given closing above 21 & 50-DMA which points out strength for next trading session. The Nifty may find support around 16100 levels while on the upside 16350 may act as an immediate hurdle crossing above the same can show upside rally.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going ahead, market will now track earnings season which begins on Friday with the release of TCS results. Impact of inflation on corporate earnings and management commentaries would be the key monitorables this results season. Market would also take cues from the macro data like GDP, CPI, Inflation and IIP data both on the domestic and global front that will be released next week.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going ahead, market will now track earnings season which begins on Friday with the release of TCS results. Impact of inflation on corporate earnings and management commentaries would be the key monitorables this results season. Market would also take cues from the macro data like GDP, CPI, Inflation and IIP data both on the domestic and global front that will be released next week.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One | The short-term structure seems bullish as the index managed to reclaim the psychological level convincingly. Also, the way the broader market has behaved towards the fag end of the week certainly augurs well for the bulls. Now since we are relatively in a safer terrain, 16000 – 15900 should now be seen as a strong support zone for the coming week; whereas on the flip side, 16350 – 16430 are the next levels to watch out for as the higher range coincides with the ’89-EMA’ on the daily time frame chart. If the global market supports then we may even go beyond 16430, which will trigger the next leg of the rally for our market participants. Until then although we remain sanguine, by no means one should become complacent here. It’s better to adopt a ‘One step at a time’ strategy and should look to book timely profits wherever it’s necessary as far as momentum trades are concerned. This week lot of thematic moves played out well and some may continue to do so in the forthcoming week. But now one needs to be very selective and should also focus on the broader market, which is likely to provide better trading opportunities as compared to key indices.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One | The short-term structure seems bullish as the index managed to reclaim the psychological level convincingly. Now since we are relatively in a safer terrain, 16000 – 15900 should now be seen as a strong support zone for the coming week; whereas on the flip side, 16350 – 16430 are the next levels to watch out for. If the global market supports then we may even go beyond 16430, which will trigger the next leg of the rally for our market participants..
Apurva Sheth, Head of Market Perspectives, Samco Securities | The coming week is going to test the market in a number of ways as a multitude of important events are lined up. The USA’s much-anticipated inflation numbers, Producer Price Index (PPI), and the jobless claims data will keep the global markets on their toes. The inflationary problem is not just restricted to the west thus the Indian inflation numbers that are set to release will keep the markets back home busy. The Retail inflation eased to 7.04% in May versus 7.79% in April, whether the declining trend continues or not is something that is keenly awaited. Aside from macro data, quarterly results will influence market sentiment. The management commentary on future earnings growth trajectory will be of interest to D-street. With a slew of important events coming up, investors are advised to be careful and cautious in their investment decisions. In the short term, it may face stiff resistance around 16,200 levels. If it maintains above that level, the next obstacle could be around 16,500 levels. On the downside, 16,000 will serve as a strong support level.
Apurva Sheth, Head of Market Perspectives, Samco Securities | The coming week is going to test the market in a number of ways as a multitude of important events are lined up. The USA’s much-anticipated inflation numbers, Producer Price Index (PPI), and the jobless claims data will keep the global markets on their toes. In the short term, it may face stiff resistance around 16,200 levels. If it maintains above that level, the next obstacle could be around 16,500 levels. On the downside, 16,000 will serve as a strong support level.
Rakesh Patil
first published: Jul 11, 2022 07:41 am
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