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Market may continue to consolidate, 14,321 a major support for Nifty: Experts

We need to see if Nifty-50 holds the 15,000 level in the near term. The next major support for the Nifty-50 is the 50 DMA placed at 14,321 as of now, says Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities.

February 22, 2021 / 08:06 AM IST
Sensex
Last week benchmark indices broke the crucial level on the back profit booking amid weak global cues. For the week, the BSE Sensex slipped 654.54 points or 1.2 percent to end at 50,889.76 and the Nifty50 shed 181.5 points or 1.2 percent to finish at 14,981.8.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS | The early week reversal from just underneath the 161.8% fibonacci retracement level of 15,470 indicates that this is an important resistance to keep an eye on in the short-term. Meanwhile, the immediate support to focus on is today's low of 14,900. If Nifty sustains below 14,900 in the coming week, the correction is likely to extend towards 14,730-14,600. However, if the index manages to hold above 14,900 and goes on to surpass 15,470, a fresh up leg can be expected to unfold that could take the index towards 15,910.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS | The early week reversal from just underneath the 161.8% fibonacci retracement level of 15,470 indicates that this is an important resistance to keep an eye on in the short-term. Meanwhile, the immediate support to focus on is today's low of 14,900. If Nifty sustains below 14,900 in the coming week, the correction is likely to extend towards 14,730-14,600. However, if the index manages to hold above 14,900 and goes on to surpass 15,470, a fresh up leg can be expected to unfold that could take the index towards 15,910.
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities | We expect domestic 10-year bond yields to be in the range of 6-6.75% in this calendar year. We need to see if Nifty-50 holds the 15,000 level in the near term. The next major support for the Nifty-50 is the 50 DMA placed at 14,321 as of now.
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities | We expect domestic 10-year bond yields to be in the range of 6-6.75% in this calendar year. We need to see if Nifty-50 holds the 15,000 level in the near term. The next major support for the Nifty-50 is the 50 DMA placed at 14,321 as of now.
Rohit Singre, Senior Technical Analyst at LKP Securities | As index managed to breached to its strong support of 15k mark which will acts as an immediate resistance now, so above 15k mark we may see some relief otherwise we may see more downside levels of 14,900-14,750 on the other hand 15,100-15,170 will act as a strong hurdle on the higher side.
Rohit Singre, Senior Technical Analyst at LKP Securities | As index managed to breached to its strong support of 15k mark which will acts as an immediate resistance now, so above 15k mark we may see some relief otherwise we may see more downside levels of 14,900-14,750 on the other hand 15,100-15,170 will act as a strong hurdle on the higher side.
BSE Sensex
Ajit Mishra, VP - Research, Religare Broking | Nifty has critical support at 14,800 and a decisive break may result in further fall else consolidation will continue. We reiterate our cautious stance and suggest focusing more on position management during the corrective phase. Further, volatility is likely to remain high across the board. Traders should align their positions accordingly and limit leveraged positions.
Markets - Image: Reuters
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | On a weekly chart, the index has formed a bar reversal candlestick pattern that clearly suggests that in the short term weakness might continue in the near future. However, the medium-term texture of the market is still bullish and likely to continue if the Nifty manages to trade above 15000(51000) levels. In such a scenario, we could see 15,150/15,200 (51600) levels where the market has spent maximum time during the recent fall. On the flip side, a decisive break of 14,900/50,600, would result in retesting of 14,750/50,150, which was earlier resistance for the market before the announcement of the Union Budget. The strategy should be to buy strong and heavyweight companies between 14,850/50,500 and 14,750/50,200 levels with a stop loss at 14,600/49,750. In the coming week, till the market is not stabilizing our focus should be on defensive sectors.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going ahead the market may continue with its consolidation for some time till the concerns over rising bond yields and inflation recedes. Even spike in virus cases is worrying the market. Further Nifty valuations at ~ 21x FY22 EPS are not inexpensive anymore and demand consistent earnings delivery ahead. Rising bond yields may cap equity valuations as the RBI may have to do a balancing act to keep bond yields at lower levels while managing the government borrowing program. Thus the market would track rising inflation, increasing covid cases along with prospective US stimulus in the near term for further direction.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going ahead the market may continue with its consolidation for some time till the concerns over rising bond yields and inflation recedes. Even spike in virus cases is worrying the market. Further Nifty valuations at ~ 21x FY22 EPS are not inexpensive anymore and demand consistent earnings delivery ahead. Rising bond yields may cap equity valuations as the RBI may have to do a balancing act to keep bond yields at lower levels while managing the government borrowing program. Thus the market would track rising inflation, increasing covid cases along with prospective US stimulus in the near term for further direction.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities | The short term trend of Nifty continues to be weak. The late hour upside recovery of Friday could signal a possibility of a minor upside bounce in the coming session. However, a decisive move below 14,950 could result more weakness down to 14,700-14,500 levels in the near term. Immediate resistance is placed at 15,115.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities | The short term trend of Nifty continues to be weak. The late hour upside recovery of Friday could signal a possibility of a minor upside bounce in the coming session. However, a decisive move below 14,950 could result more weakness down to 14,700-14,500 levels in the near term. Immediate resistance is placed at 15,115.
 Nirali Shah, Head of Equity Research, Samco Securities | Going ahead, markets are expected to remain dull and range-bound in absence of any major positive triggers. Therefore, investors are suggested to count on this opportunity to alter their portfolios by withdrawing monies from the weaker quality stocks and investing new monies in quality bets only on dips. Additionally, it also appears that the market is in a longer-term bull rally with an intermediate top in the making.
Nirali Shah, Head of Equity Research, Samco Securities | Going ahead, markets are expected to remain dull and range-bound in absence of any major positive triggers. Therefore, investors are suggested to count on this opportunity to alter their portfolios by withdrawing monies from the weaker quality stocks and investing new monies in quality bets only on dips. Additionally, it also appears that the market is in a longer-term bull rally with an intermediate top in the making.
S Ranganathan, Head of Research at LKP Securities | During the coming week, we expect investor interest coming back to large banks as FPI flows this month at over Rs 24,000 crore reflects the appetite of foreign funds.
S Ranganathan, Head of Research at LKP Securities | During the coming week, we expect investor interest coming back to large banks as FPI flows this month at over Rs 24,000 crore reflects the appetite of foreign funds.
Vinod Nair, Head of Research at Geojit Financial Services | We expect the domestic market to continue following the global markets in the coming week due to lack of any major domestic events. While, GDP data for the 3rd quarter which is to be released towards the end of next week, is expected to show signs of economic recovery adding positive momentum in Indian market.
Vinod Nair, Head of Research at Geojit Financial Services | We expect the domestic market to continue following the global markets in the coming week due to lack of any major domestic events. While, GDP data for the 3rd quarter which is to be released towards the end of next week, is expected to show signs of economic recovery adding positive momentum in Indian market.
Rakesh Patil
first published: Feb 22, 2021 07:46 am

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