Markets will react to macroeconomic data, stay cautiously positive: Analysts

Market continued the winning streak for the sixth consecutive week ended on December 11 with Sensex adding 1,019.46 points or 2.26 percent to close at 46,099.01 and while the Nifty50 gained 255.35 points or 1.92 percent to end at 13,513.90 levels.

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments | 13400-13700 is the range for this market and this is also a stiff resistance zone. We will breakdown only if 13300-13350 is broken and we will see a renewed rally up only post a closing above 13700. Until then traders should trade cautiously with strict stop-loss levels.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research | The market continues to witness a lack of momentum and stayed in the range between the level of 13580 to 13350(Nifty 50 Index). As of now, the short-term technical condition of the market appears like a sideways correction in the process. While it is subject to further price action evolution, our research suggests it is prudent to wait for a decisive breakout above 13600 before adding to the existing position if any. Once this level is met, then we expect the market to gain momentum, which could lead to an upside projection till the 13730 levels.

Keshav Lahoti, Associate Equity Analyst, Angel Broking | After the recent rally in the market, we are cautiously positive on the market. We advise investors to have ~15% of their portfolio in liquid assets so that it can be utilized when correction happens in the market.

Ajit Mishra, VP - Research, Religare Broking | Markets will react to the macroeconomic data viz. IIP and CPI inflation in early trade on Monday. We reiterate our positive yet cautious approach citing overbought conditions and suggest limiting leveraged positions. It’s prudent to stick with a stock-specific trading approach and using dips to add quality stocks.

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | On Monday, it would a tough job for the bulls. The Nifty 50 index needs to cross 13600 levels. If the Nifty 50 index convincingly crosses 13600, it would jump to 13750 levels without any major hurdle. On the contrary, we can expect a quick decline below the level of 13400, if the market breaks 13400 levels. In that case Nifty 50 index could fall to 13200 levels.

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | In the near future, 13400 and 13600 would be trading range for the market. On the dismissal of 13400, Nifty could fall to 13200 levels, where it could take support of 20 days SMA. On the higher side, 13600 and 13750 would be major hurdles. The momentum of the market is very strong and sectoral rotation activity is still clearly visible that would attract buying in the market at major supports. On the higher side, take a cotra-call of trading short on the Nifty with a stop loss at 13800. Sector specific: Technology and Financial stocks should be in the focus list.

Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisor | RSI and Stochastic are trading with negative divergence on a daily timeframe and any decisive move below the line of parity standing around 13400 will confirm short term price reversal which can push prices lower towards 20 DMA standing around 13100.