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Positive momentum likely to continue amid RBI, BoE pilicy, PMI, auto sales data: Experts

All eyes would be on RBI and BoE monetary policy next week where investors expect them to soften their aggression a little, following US Fed, says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

July 31, 2022 / 09:57 AM IST
Indian equity market rose more than 2 percent during the week ended 29 July, tracking positive global cues as the US Fed raised interest rates in line with expectations. For the week, the BSE Sensex jumped 1,498.02 points (2.67 percent) to end at 57,570.25, while the Nifty50 gained 438.85 points (2.62 percent) to close at 17158.3 levels. In the month of July, both the main indices rose 8.5 percent.
Indian equity market rose more than 2 percent during the week ended 29 July, tracking positive global cues as the US Fed raised interest rates in line with expectations. For the week, the BSE Sensex jumped 1,498.02 points (2.67 percent) to end at 57,570.25, while the Nifty50 gained 438.85 points (2.62 percent) to close at 17158.3 levels. In the month of July, both the main indices rose 8.5 percent.
Ajit Mishra, VP - Research, Religare Broking | Nifty has surpassed the crucial hurdle of June month’s high i.e. 16,800 decisively and we’re now eyeing 17,400. Participants should align their positions accordingly and look for buying opportunities on dips. While all the sectors are contributing to the move, we believe the focus should still be on the top performers rather than expecting a turnaround in the beaten-down names. We reiterate our preference for auto, FMCG, banking and financials and remain selective in other sectors.
Ajit Mishra, VP - Research, Religare Broking | Nifty has surpassed the crucial hurdle of June month’s high i.e. 16,800 decisively and we’re now eyeing 17,400. Participants should align their positions accordingly and look for buying opportunities on dips. While all the sectors are contributing to the move, we believe the focus should still be on the top performers rather than expecting a turnaround in the beaten-down names. We reiterate our preference for auto, FMCG, banking and financials and remain selective in other sectors.
Ruchit Jain, Lead Research, 5paisa.com | The near term support for the index has shifted higher and is now placed around 16930 while the medium term support base has shifted higher to 16550 and 16420. The only cautious factor on the short term charts is the momentum readings which are again in the overbought zone. However, when in a strong trending move, it is often seen that the upmove continues in the overbought zone as well until any divergences get formed. On the higher side, 17300-17400 will be the important resistance zone and hence traders can look to book profits and take money off the table there. Trading with a stock specific approach and booking profits at higher levels should be the approach to trade the markets in the coming week.
Ruchit Jain, Lead Research, 5paisa.com | The near term support for the index has shifted higher and is now placed around 16930 while the medium term support base has shifted higher to 16550 and 16420. The only cautious factor on the short term charts is the momentum readings which are again in the overbought zone. However, when in a strong trending move, it is often seen that the upmove continues in the overbought zone as well until any divergences get formed. On the higher side, 17300-17400 will be the important resistance zone and hence traders can look to book profits and take money off the table there. Trading with a stock specific approach and booking profits at higher levels should be the approach to trade the markets in the coming week.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One | As far as the Nifty is concerned, we may see some consolidation going ahead, but the undertone in the broader market would continue to remain strong. For the coming week, 17380 followed by 17450 are the immediate levels to watch out for. Although globally we are seeing some relief, we advise traders not to get too complacent. It’s advisable to keep booking timely profits on existing positions at higher levels and the churning within the potential movers remains the key. The NIFTY MIDCAP50 index too traversed through its ‘200-SMA’ and the way some of the midcap counters performed this week, one should look to identify stocks from the cash segments as well.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One | As far as the Nifty is concerned, we may see some consolidation going ahead, but the undertone in the broader market would continue to remain strong. For the coming week, 17380 followed by 17450 are the immediate levels to watch out for. Although globally we are seeing some relief, we advise traders not to get too complacent. It’s advisable to keep booking timely profits on existing positions at higher levels and the churning within the potential movers remains the key. The NIFTY MIDCAP50 index too traversed through its ‘200-SMA’ and the way some of the midcap counters performed this week, one should look to identify stocks from the cash segments as well.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | All eyes would be on RBI and BoE monetary policy next week where investors expect them to soften their aggression a little, following US Fed. Apart from these, PMI data would be released by both India and US along with US jobless claim data. Going ahead, next week investors would also watch out for OPEC meeting outcome which might keep oil prices on edge. Overall we expect the positive momentum to continue in the market with bouts of volatility. Stock specific action would continue as the busy results season continues.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | All eyes would be on RBI and BoE monetary policy next week where investors expect them to soften their aggression a little, following US Fed. Apart from these, PMI data would be released by both India and US along with US jobless claim data. Going ahead, next week investors would also watch out for OPEC meeting outcome which might keep oil prices on edge. Overall we expect the positive momentum to continue in the market with bouts of volatility. Stock specific action would continue as the busy results season continues.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas | Nifty has scaled above the 61.8% retracement of the Apr – June decline & the 200 DMA. Thus the index can continue to stretch higher as long as it stays above 17000. On the higher side, it can test 17300 in the short term.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas | Nifty has scaled above the 61.8% retracement of the Apr – June decline & the 200 DMA. Thus the index can continue to stretch higher as long as it stays above 17000. On the higher side, it can test 17300 in the short term.
Rakesh Patil
first published: Jul 31, 2022 09:57 am
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