Market likely to remain sideways in a range in the near term: Experts
Vinod Nair, Head of Research at Geojit Financial Services believes that, the ongoing volatility will sustain in the near-term because of high interest rates and a slowing economy.
Indian equity benchmarks bounced back sharply on December 30 to snap 3-week losing streak and gained over 1 percent. BSE Sensex advanced 995.45 points or 1.66 percent to close at 60,840.74, while Nifty50 gained 298.5 points or 1.67 percent to settle at 18,105.3 levels.
2/8
Amol Athawale, Deputy Vice President - Technical Research at Kotak Securities | For trend following traders now, 18000/60500 would act as a sacrosanct support zone for the Nifty. Above which, the index could move up till the 50 day SMA (Simple Moving Average) or 18300/61400. Further upside may also continue which could lift the index till 20 day SMA or 18400/61750. On the flip side, fresh selloff is possible only after dismissal of 18000/60500, below which the market could slip till 17800-17750/59800-59600 levels.
3/8
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities | In the coming week, the market will remain in a broad trading range of 18500 and 17800. Traders and investors should be cautious while adding long positions at higher levels. In the coming month, the announcement of Q3 FY2023 data will play an important role in deciding the broad market trend. Also, ahead of the budget announcement, we are expecting an increase in volatility in the options segment. Trade cautiously in the market.
4/8
Mohit Ralhan – CEO TIW Capital | Domestic market-driven companies are likely to continue doing better in 2023, especially in the first half of 2023. In the first half of 2023, investors may look to ride the momentum of banks, auto and FMCG sectors. Then, as global economy and especially USA start showing signs of stable recovery, investors may look at Indian IT and pharmaceutical stocks. The chemicals sector in India also appears to be a good long-term investment. Overall, Indian stocks are likely to continue performing better in comparison to other major economies and expected to give 10%-15% return in 2023.
Ajit Mishra, VP - Technical Research, Religare Broking | The coming week marks the beginning of the new calendar year 2023 and participants will look forward to important data viz. auto sales, S&P Global India Manufacturing PMI data and S&P Global India Services PMI data during the week. Besides, global cues will continue to keep the volatility high. Nifty has multiple hurdles to cross till 18,500 so participants should continue with stock- specific approach. We are seeing certain themes and sectors like fertilisers, sugar, banking, metal, and energy showing resilience while defensive viz. FMCG and pharma may continue to trade lackluster so plan your positions accordingly.
6/8
Vinod Nair, Head of Research at Geojit Financial Services | The ongoing volatility is expected to be sustained in the near-term because of high interest rates and a slowing economy. We believe that value buying is the theme of 2023, with a focus on domestically oriented sectors and buying on dips. Fair valuation, steady earnings, and a robust demand scenario will be the cutting parameters.
7/8
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | As we start the new year 2023, we expect markets to remain sideways in a range in the near term. While fears of recession and spread of covid outside China is capping the upside, we are witnessing strong buying at lower levels which are supporting the markets on the downside. Q3 results and the upcoming Union Budget could provide much needed fresh positive triggers to Indian Equities. Auto sector is likely to be in focus next week on back monthly auto sales data. Metals too will be in focus after China announced to raise export duty on metals.
8/8
Apurva Sheth, Head of Market Perspectives, Samco Securities | A few significant data points will be released next week. The United States will publish its November 2022 export and import data, as well as its trade balance figures. As market players attempt to understand the Fed's stance, Indian markets may respond in lockstep with their international counterparts when the FOMC minutes are made public later this week. Back home, the New Year is poised to begin with Auto numbers, which will be noteworthy because a mixed set of numbers is expected. The demand in rural regions will be watched, along with growth rates across categories. Investors should organise their portfolios correctly during volatile periods and focus on the long view rather than the immediate problems. The bullish bias in NIFTY50 remains intact, as long as prices remain above 17,800 on a closing basis. Nevertheless, if prices were to close below 17,750, then the view will turn bearish. Resistances are 18,300 to 18,450 levels.
