Indian market closed lower for the week ended July 2 as investors worried about the possible third wave of coronavirus and the rising cases of delta plus variant. Last week, BSE Sensex shed 440.37 points (0.83 percent) to end at 52,484.67, while Nifty50 fell 138.15 points (0.87 percent) to close at 15,722.2 levels. Here is what experts say investors should expect this week:
2/7
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments | The bias still remains on the upside as long as 15,400 does not break on a closing basis. Nifty still has the wings to achieve 16,100 and hence any dip can be utilised to accumulate long.
3/7
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas | Nifty posted a positive daily close on July 2 after four consecutive negative sessions. The selling pressure in the beginning of the session was absorbed near 15,650-15,630 and the index bounced thereon. Multiple support parameters likely at 61.8% retracement of the previous rise from 15,450 to 15,915, the daily lower Bollinger Band, lower end of a falling channel on the hourly chart and lower end of a rising channel on the daily chart were present near 15,650-15,630 that pushed bulls into action. Hereon, the index is set to take leap towards 15,900 and once that is crossed on a closing basis, the Nifty can target 16,400 on the upside. On the downside, 15,650-15,630 will continue to act as a crucial support zone on a closing basis.
4/7
Nirali Shah, Head of Equity Research, Samco Securities | Large and midcap IT companies will remain in focus this week as Q1 FY22 result season commences in India. USA’s IT services companies registered exemplary earnings performance with upward revision in their outlook propelled by strong tailwinds. Hence, in a similar fashion, IT stocks in India have been witnessing a strong push over healthy earnings expectations. Investors are therefore advised to look for any short pullbacks post earnings as an opportunity to enter the IT sector.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going ahead, the equity market may continue to consolidate in the near term given the worry over the potential risk from Covid third wave and the commodity price-led inflation and in absence of any fresh trigger. Nifty valuations at the current juncture is not inexpensive and demand consistent earnings delivery ahead. Any disappointment on the earnings front could weaken the overall positive sentiments. However, we expect the earnings momentum is to accelerate given the pickup in the pace of vaccination and the further opening of the economy. Good monsoon further supports bullish biasedness.
6/7
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking | As long as 15650 – 15450 are being held, the bulls have no reason to worry for. On the upside, reaching the new milestone of 16000 has become challenging and the market clearly seem to be waiting for some sort of trigger to reach there. Before this, 15800 followed by 15900 are to be seen as immediate hurdles. With Friday’s some positivity, the hopes have certainly built for benchmark index to head higher towards the millstone in the forthcoming week. But we reiterate, if that has to happen, the banking space certainly needs to come out of its slumber phase. Let’s see how things pan out going ahead and till then it’s better to keep a close tab of all the mentioned levels.
7/7
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | In the medium term, we expect FPI flows to India to remain strong, driven by recovery in growth. Positive export outlook led by a revival in the global economy coupled with low interest rates in the domestic market is expected to augur well for India. Besides decline in COVID cases and vaccination drive, expectations of increased consumer spending and normal monsoon rainfall is likely to drive the domestic demand. Also, we expect the upcoming festive season to also boost the domestic demand.
