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Nifty's best week since Feb 2021 as FPIs return; Eye on US GDP & FOMC next

The equity market is in the green, supported by healthy quarterly earnings, good monsoon, buying across sectors, positive global cues, FIIs turning buyers after a long time and falling crude oil prices. Technically, any close above 17,051 for the Nifty will confirm strength in the up-move. On the downside, the Nifty has support at 16,571 mark, and in case the intra-day support of 16,571 collapses, the index will support at the psychological 16250 mark

July 25, 2022 / 08:16 AM IST
ndian equity markets settled on a positive note for the week ended July 22, supported by healthy quarterly earnings, good monsoon, buying across sectors, positive global cues, FIIs turning buyers after a long time and falling crude oil prices.
Indian equity markets settled on a positive note for the week ended July 22, supported by healthy quarterly earnings, good monsoon, buying across sectors, positive global cues, FIIs turning buyers after a long time and falling crude oil prices. For the week, BSE Sensex rose 2,311.45 points (4.29 percent) to end at 56,072.23 while the Nifty50 added 670.3 points (4.17 percent) to close at 16,719.5.
Manish Shah, Independent Technical Analyst | There could be some sideways movement and there could be a short-term corrective decline on the horizon. Support for Nifty is at 16500. Any declines in Nifty will take a halt between 16500-16550. If Nifty holds and moves above 16600 there should be more upside to 16700-16750 going into the last week of July Expiry.
Manish Shah, Independent Technical Analyst | There could be some sideways movement and there could be a short-term corrective decline on the horizon. Support for Nifty is at 16,500. Any declines in Nifty will take a halt between 16,500-16,550. If the Nifty holds and moves above 16,600, then there should be more upside to 16,700-16,750 going into the last week of July expiry.
Ajit Mishra, VP - Research, Religare Broking | The coming week is action packed as we have several important data and events lined up. First, participants will react to results of the index heavyweights like Reliance, Infosys, ICICI Bank and Kotak Bank in early trades. On the global front, US Fed decision on interest rate on July 27 and US GDP data on July 28 will be closely watched. Meanwhile, the scheduled expiry of July month derivatives contracts will keep the participants busy.
Ajit Mishra, VP - Research, Religare Broking | The coming week is action-packed as we have several important data and events lined up. First, participants will react to results of the index heavyweights like Reliance, Infosys, ICICI Bank and Kotak Bank in early trades. On the global front, the US Fed decision on interest rate on July 27 and the US GDP data on July 28 will be closely watched. Meanwhile, the scheduled expiry of July month derivatives contracts will keep the participants busy.
Prashanth Tapse, Vice President (Research), Mehta Equities | Technically, any close above Nifty’s 200 DMA at 17051 will confirm strength in the up-move. On the downside, the Nifty has support at 16571 mark, and in case the intra-day support of 16571 collapses, the index will support at the psychological 16250 mark.
Prashanth Tapse, Vice President (Research), Mehta Equities | Technically, any close above the Nifty’s 200 DMA at 17,051 will confirm strength in the up-move. On the downside, the Nifty has support at 16,571 mark, and in case the intra-day support of 16,571 collapses, the index will support at the psychological 16,250 mark.
Ruchit Jain, Lead Research, 5paisa.com | Market participants would be eyeing various factors in the coming week including corporate results of some heavyweights, U.S. Fed meeting outcome and the monthly expiry effect. In the coming week, the resistance will be seen around the 17000 mark where we can see the 61.8 percent retracement level of the above mentioned corrective phase. Since momentum readings have also approached the overbought zone, it is prudent to look to book profits now on the long positions and take some money off the table. On the flipside, the immediate support for Nifty is placed around 16590, followed by the recent gap zone of 16490-16360.
Ruchit Jain, Lead Research, 5paisa.com | Market participants would be eyeing various factors in the coming week including corporate results of some heavyweights, US Fed meeting outcome and the monthly expiry effect. In the coming week, the resistance will be seen around the 17,000 mark where we can see the 61.8 percent retracement level of the above mentioned corrective phase. Since momentum readings have also approached the overbought zone, it is prudent to look to book profits now on the long positions and take some money off the table. On the flipside, the immediate support for Nifty is placed around 16590, followed by the recent gap zone of 16,490-16,360.
Apurva Sheth, Head of Market Perspectives, Samco Securities | The short-term trend remains positive based on other market indicators such as breadth and sentiment, we believe the Nifty will rise to 17,400. The immediate support and resistance levels are presently at 16,350 and 16,830. A break below 16,150 will nullify the bullish outlook. The forthcoming week will be action-packed with activities. The FOMC meeting and press conference will take centre stage. While the rate hike is anticipated to be aggressive, market participants will attempt to interpret between the lines to assess the economy's route. The Fed would attempt to keep inflation in check without harming the labour market. Besides that, the release of the United States' QoQ GDP figures would have an impact on market sentiment. In Indian markets one can expect some volatility as we approach the monthly expiry. The Nifty 50 ended the week at 16,719, up 4.18 percent.
Apurva Sheth, Head of Market Perspectives, Samco Securities | The short-term trend remains positive based on other market indicators such as breadth and sentiment, we believe the Nifty will rise to 17,400. The immediate support and resistance levels are presently at 16,350 and 16,830. A break below 16,150 will nullify the bullish outlook. The forthcoming week will be action-packed with activities. The FOMC meeting and press conference will take the centre stage. While the rate hike is anticipated to be aggressive, market participants will attempt to interpret between the lines to assess the economy's route. The Fed would attempt to keep inflation in check without harming the labour market. Besides that, the release of the United States' QoQ GDP figures would have an impact on market sentiment. In Indian markets one can expect some volatility as we approach the monthly expiry. The Nifty 50 ended the week at 16,719, up 4.18 percent.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Monday domestic equities will react to results from several index heavyweights (with more than 30% of Nifty weight) which would announce their numbers over the weekend. On the global front, US Fed meeting and US Q2 GDP data would be key events to watch out for. FII’s turning positive after a very long time, along with strong results have kept the momentum strong for the week. Nifty has closed above its key resistance levels and now is set for an up-move towards 17,000. India VIX has also cooled down by ~20% to 16.65 levels in last one month indicating decline in Volatility and supporting overall bullish sentiments.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | On Monday, the domestic equities will react to results from several index heavyweights (with more than 30 percent of Nifty weight) which would announce their numbers over the weekend. On the global front, US Fed meeting and US Q2 GDP data would be key events to watch out for. FIIs turning positive after a very long time, along with strong results have kept the momentum strong for the week. The Nifty has closed above its key resistance levels and now is set for an up-move towards 17,000. India VIX has also cooled down by 20 percent to 16.65 levels in last one month indicating decline in Volatility and supporting overall bullish sentiments.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas | For the last three sessions, the Nifty index is hovering near this upper channel line, which is inching higher as it is an upward sloping line. So the benchmark index is now trading close to its short term target of 16800. In the case, Nifty overshoots 16800 then it can stretch towards 17000. On the flip side, breach of 16600 can trigger a short term dip towards 16360. So 16600 can be considered as a SAR (Stop And Reverse) level for the long position
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas | For the last three sessions, the Nifty index is hovering near this upper channel line, which is inching higher as it is an upward sloping line. So the benchmark index is now trading close to its short-term target of 16,800. In the case, the Nifty overshoots 16,800, then it can stretch towards 17,000. On the flip side, breach of 16,600 can trigger a short-term dip towards 16,360. So, 16,600 can be considered as a SAR (Stop And Reverse) level for the long position.
Rakesh Patil
first published: Jul 25, 2022 07:04 am
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