Indian markets gained for the third consecutive week with Nifty touching all-time high amid positive global and domestic cues. BSE Sensex rose 677.17 points (1.31 percent) to end at 52,100.05, while Nifty50 added 234.65 points (1.52 percent) to close at 15,670.3. Here's how the price action will be this week, according to experts.
2/6
Ashis Biswas, Head of Technical Research at CapitalVia Global Research | While it is subject to further price action evolution, the technical factors are aligned to support a lacklustre market movement going forward. Any corrective wave down should find support around 15300-15350. As such, the traders are advised to refrain from building a fresh buying position until the market witnesses a correction till 15300-15350 level. Volatility expanded in Friday’s trading session which indicates profit-booking and distribution of stocks at higher levels.
3/6
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments | Nifty has closed a few points below 15700 but the trend still remains positive and we should head to 15900-16000. The Nifty has multiple supports at 15600, 15400 and 15300. The most crucial of these is the 15300 level which needs to be respected on a closing basis. Intraday dips should be utilized to accumulate buy positions on the index for higher targets.
4/6
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | Technically, 15550 and 15400 levels would be major supports for Nifty. On the higher side, 15800, 16000 and 16200 would be major levels to arrest the bull run. The basic trend of the market is bullish but in the absence of domestic flows, our markets would start following the global cues, which are mixed and sensitive to the pace of inflation. In the coming week, global cues could dominate the market. For the week the strategy should be to buy on dips between 15550/15450 with a final stop loss at 15350 levels. The focus should be on Auto, Insurance, Commodities and technology companies.
Ajit Mishra, VP Research. Religare Broking | We might see a pause in the index initially, after gaining for three successive weeks but the bias would remain on the positive side. In case of any dip, the previous record high zone i.e. 15,400 would act as crucial support in Nifty. On the higher side, we’re eyeing the 15,800-16,000 zone. Most of the sectors are trading in sync with the trend and we feel auto, IT and FMCG may see good traction next week. However, it’s not going to easy to identify the right opportunity at record highs so maintain extra focus on that front and avoid contrarian trades.
6/6
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | After the recent run-up, Nifty now trades at rich valuations. Thus, any negative surprise or misses in the June quarter earnings could act as a dampener. However, the overall structure of the market remains positive as the second COVID wave has now started to recede. There is greater visibility on vaccine supply now as well. This would boost and provide confidence in economic growth recovery in FY22E. As states ease restrictions gradually in June, we expect the demand to improve. Technically, Nifty can see a move towards a fresh lifetime high of 16000 zones.
