Global cues to guide market direction, eyes on WPI data: Experts
If the market sustains above the level of 16500, the market expects to gain momentum, leading to an upside projection till 16700-16750 level, says Ashis Biswas, Head of Technical Research at CapitalVia Global Research.
Indian market continued to rise for the second consecutive week, with Sensex and Nifty, touching their fresh record high levels of 55,487.79 and 16,543.60. On a weekly basis, BSE Sensex rose 1,159.57 points (2.13 percent) to close at 55,437.29, while the Nifty50 added 290.9 points (1.79 percent) to end at 16529.10 levels. BSE Largecap Index rose 1.5 percent, BSE Smallcap shed 1.7 percent and BSE Midcap index slipped over 1 percent.
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Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking | Going ahead, things are going to get tougher because from hereon we are likely to see lot sector churning every now and then. Nifty has reached 16500 without the participation of banking space, which is hard to believe. So it would be interesting to see how things pan out going ahead. Also, it would be unfair to expect the similar pace from Nifty to reach new millstones. Since there is no sign of weakness, we are not advising to go against the trend but we reiterate when things start to look hunky dory everywhere, wise traders chose to take some money off the table. We second this as we advise continuing with one step at a time approach and keep booking timely profits in the rally. As far as levels are concerned, the sacrosanct support is placed at 16200 – 16170 before which 16400 – 16300 are to be considered as immediate levels. On the upside, it’s hard to project any level as we have entered an uncharted territory. Still, every 100 points rally from hereon should be treated as the upside range.
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Ashis Biswas, Head of Technical Research at CapitalVia Global Research | The market has breached an important resistance level of 16500. If the market sustains above the level of 16500, the market expects to gain momentum, leading to an upside projection till 16700-16750 level. The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.
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Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | Going forward, Indian Markets would remain buoyant on the back of US economic recovery, bullish commodity prices, the pace of vaccination process in India, unlock measures by various states, strong GST collections, monsoon development Pan India, the accommodative stance of the RBI, and consistency of reforms from the Central Government.
Ajit Mishra, VP Research. Religare Broking | The coming week is a holiday-shortened one and participants will be first eyeing WPI inflation data which is scheduled on August 16. In absence of any major event, the news of further unlocking by the states and pace of vaccination drive would remain in focus. On the global front, the rising COVID cases due to the delta variant remain the key concern. Markets are taking comfort from the upbeat global markets and supportive domestic cues amid the fear of a third COVID wave. However, we’re now seeing restricted participation and expect the same trend to continue, at least in the near future. We thus advise continuing with the “buy on dips” approach but focus largely on index majors and select midcaps for long trades. Among the sectors, participants should focus on banking (mainly private), financials, energy, FMCG and metal for fresh positions while pharma, media and realty may continue to trade lackluster.
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Nirali Shah, Head of Equity Research, Samco Securities | The majority of India Inc.'s first-quarter earnings were stronger than expected and in the absence of a major event, global cues are expected to guide market direction. Although WPI numbers are anticipated to be released in the upcoming week, markets are expected to consider them as a non-event. Investors are recommended to steer clear from securities where valuations seem unreasonable, instead to ride the bull wave mainly on fundamentally sound businesses.
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Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas | The index crossed our short term target of 16400 & is heading towards the subsequent target of 16800. The level of 16800, which was our medium term target earlier, now becomes the short term target & the medium term target has been raised to 17500. The hourly & the daily momentum indicators are now showing overbought readings; so a minor pause cannot be ruled out; nevertheless the overall structure shows that the rally is far from over. Thus the short term traders are recommended to hold on to their long positions & ride the trend for higher targets. On the other hand, the near term support zone shifts higher to 16350-16400.
