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Market may see profit-booking, experts say Nifty can test 17,600-17,500

Derivatives expiry will keep participants busy this week. Global cues, especially from the US, FII flows and Brent crude will drive the market, experts say

August 22, 2022 / 08:26 AM IST
A,Black,Led,Board,With,Sensex,And,Nifty,In,Red
The Indian equity market closed the week gone by with moderate gains on August 19, continuing the winning streak for the fifth straight week, helped by sustained FII buying. For the week, the BSE Sensex gained 183.37 points (0.30 percent) to end at 59,646.15, while the Nifty added 60.50 points (0.34 percent) to close at 17,758.5.
Ajit Mishra, VP - Research, Religare Broking | In the coming week, the scheduled derivatives expiry will keep the participants busy. Besides, global cues especially from the US and figures of foreign flows will remain on the radar. Markets may witness consolidation after five weeks of the successive rise and it would be healthy. We hardly saw any major decline in the index in the recent phases of consolidation however a lot would depend on the performance of US indices next week where we see still see room for further upside. We believe the 17,300-17,600 zone would provide a cushion in Nifty next week while a rebound towards the 17,850-18,100 zone may attract profit booking.
Ajit Mishra, VP - Research, Religare Broking | The scheduled derivatives expiry will keep the participants busy this week. Global cues, especially from the US, and foreign flows will remain on the radar. The market may witness consolidation after five weeks of the successive rise and it would be healthy. We hardly saw any major decline in the index in the recent phases of consolidation, however, a lot would depend on the performance of US indices, where we see still see room for a further upside. We believe the 17,300-17,600 zone will provide a cushion to the Nifty during the week, while a rebound towards the 17,850-18,100 may attract profit-booking.
Apurva Sheth, Head of Market Perspectives, Samco Securities | The D-street will be focusing on the macro trends this week as the results season nears its end. There are also no significant macroeconomic events taking place in the coming week, thus the focus of the market will be on the FII trends and Brent crude. Over INR 18,500 crore have been purchased by FIIs thus far in August owing to their buying frenzy. The latest rally has been greatly aided by the ongoing FII buying. The market will be closely monitoring this trend because any reversal could cause a temporary blip. In light of recessionary worries, Brent crude prices are declining and are now trading at a six-month low of approximately USD 93.65. The markets will attempt to decipher the movements of the same in the future. Nifty 50 closed the week at 17,758.45, up by 0.34%.
Apurva Sheth, Head of Market Perspectives, Samco Securities | The D-Street will focus on the macro trends during the week as the results season nears its end. There are also no significant macroeconomic events taking place, thus the focus will be on the FII trends and Brent crude. Shares worth more than Rs 18,500 crore have been purchased by FIIs in August, so far. The latest rally has been greatly aided by the FII buying. The market will be closely monitoring this trend because any reversal can cause a temporary blip. In light of recessionary worries, Brent crude prices are declining and are now trading at a six-month low of around $93.65. The markets will attempt to decipher the movements of the same in the future.
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities| Below 17900, the correction formation is likely to continue and could retest the level of 17600-17500. On the flip side, 17900 – 17950 would act as an immediate hurdle for the bulls. Fresh uptrend is possible only if the index clears the resistance of 17950, which could then take it further to 18050-18150 levels.
Amol Athawale, Deputy Vice President-Technical Research, Kotak Securities| Below 17900, the correction formation is likely to continue and the Nifty can retest 17,600-17,500. On the flip side, 17,900–17,950 will act as an immediate hurdle for the bulls. A fresh uptrend is possible only if the index clears the resistance of 17950, which can then take the index to 18,050-18,150.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One | In the first half of the coming week, any bounce towards 17800 – 17875 is likely to get sold into. Traders are advised to lighten up longs in this rebound and stay on the sidelines for a while. Aggressive traders can certainly look to initiate bearish bets by keeping a strict exit strategy beyond 18000. On the flip side, if we see some nervousness globally, we may see Nifty testing lower levels of 17600 – 17450. This is to clarify that the overall trend remains strongly bullish and since we have rallied vertically from 16400, we may see further profit booking in the coming week. This view remains valid as long as 18000 is not breached on a sustainable basis. Also, in case of this probable decline, it is to be considered a healthy development for the next leg of the rally and hence should be used to go long. Trades are advised to keep a close tab on the above-mentioned scenarios and should continue with a stock-specific approach.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One | In the first half of the week, any bounce towards 17,800–17,875 is likely to get sold into. Traders are advised to lighten up longs and stay on the sidelines for a while. Aggressive traders can look to initiate bearish bets by keeping a strict exit strategy beyond 18,000. On the flip side, weak global cues may push the Nifty lower to 17,600–17,450. The overall trend still remains bullish. As the Nifty has rallied vertically from 16,400, profit booking is likely during the week. This view remains valid as long as 18,000 is not breached on a sustainable basis. The decline should be considered a healthy development for the next leg of the rally and be used to go long. Traders should continue with a stock-specific approach.
Rakesh Patil
first published: Aug 22, 2022 08:26 am
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