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Slideshow | Experts advice 'buy on dips'; Nifty may inch towards 10K

Last week, BSE Sensex jumped 1,751.51 points to close at 32,424.1, while the Nifty50 added 541.05 points to end at 9,580.3 levels. Here are the experts view on how will market trade in the coming week:
Jun 1, 2020 / 07:55 AM IST
Indian benchmark indices rose 6 percent in the last week and broke the third week losing streak amid supporting global markets, some relaxation of lockdown norms with opening of domestic air-travel. However, escalation US-China and India-China tensions remain a concern. BSE Sensex jumped 1,751.51 points to close at 32,424.1, while the Nifty50 added 541.05 points to end at 9,580.3 levels.
Indian benchmark indices rose 6 percent in the week gone by breaking the three-week losing streak amid supporting global markets, relaxation of lockdown norms and opening of domestic air-travel. However, escalating US-China and India-China tensions remain a concern. BSE Sensex jumped 1,751.51 points to close at 32,424.1, while the Nifty50 added 541.05 points to end at 9,580.3 levels.
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors | The highest high in the last four week is standing around 9650 and weekly close above this mark will give a fresh breakout and prices can move towards previous swing high placed around 9960 & further towards 10220 which is mid-line of Bollinger Band. Nevertheless, the recent formation of bullish Wolfe Wave pattern in Nifty had a target of 9620 and a range trading probability of 9700-9300 in the coming days. Bollinger Band on the daily timeframe is squeezing, but a decisive price action may happen once Nifty crosses the resistance zone of 9650-9700.
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors | The highest high in the last four week is standing around 9,650 and weekly close above this mark will give a fresh breakout and prices can move towards previous swing high placed around 9,960 & further towards 10,220 which is mid-line of Bollinger Band. Nevertheless, the recent formation of bullish Wolfe Wave pattern in Nifty had a target of 9,620 and a range trading probability of 9,700-9,300 in the coming days. Bollinger Band on the daily timeframe is squeezing, but a decisive price action may happen once Nifty crosses the resistance zone of 9,650-9,700.
According to Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments, on Friday the market also managed to cross its recent high of 9585 which was recorded on May 13, 2020. The level of 9700 should be achieved sooner than later.
According to Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments, on Friday the market also managed to cross its recent high of 9,585 which was recorded on May 13, 2020. The level of 9,700 should be achieved sooner than later.
Tensions between India and China and China and the US remains a concern for the markets. Also, any acceleration in Covid infections could further slowdown lifting of lockdown and delay any economic recovery. Not with standing, the near-term uncertainty, valuations are attractive on a medium term basis, said Sanjeev Zarbade, VP PCG Research, Kotak Securities.
Tensions between India and China and China and the US remains a concern for the markets. Also, any acceleration in COVID infections could further slowdown the lifting of lockdown and delay economic recovery. Notwithstanding, the near-term uncertainty, valuations are attractive on a medium-term basis, said Sanjeev Zarbade, VP PCG Research, Kotak Securities.
Ajit Mishra, VP - Research, Religare Broking feels that markets would react to domestic GDP data numbers on Monday. Further, the US President’s press conference on China amid Beijing-Washington tiff would also be on the radar. We might see a pause after the recent surge but the bias would remain on the positive side, citing the potential of a further surge in the banking index. Traders should focus more on stock selection while maintaining a “buy on dips” approach.
Ajit Mishra, VP - Research, Religare Broking feels that markets would react to domestic GDP data numbers on Monday. Further, the US President’s press conference on China amid Beijing-Washington tiff would also be on the radar. We might see a pause after the recent surge but the bias would remain on the positive side, citing the potential of a further surge in the banking index. Traders should focus more on stock selection while maintaining a “buy on dips” approach.
According to Sumeet Bagadia, Executive Director at Choice Broking, the ways Nifty has been trading above its 21 Days moving Average since last three days, it indicates a positive momentum for the time being. As of now, the Index has a resistance at 9600, if the index gives a close above this level then we may see a good spurt upto the level of 9730-9890 level with downside support comes at 9400.
According to Sumeet Bagadia, Executive Director at Choice Broking, the ways Nifty has been trading above its 21 Days moving Average since last three days, it indicates a positive momentum for the time being. As of now, the Index has resistance at 9,600, if the index gives a close above this level then we may see a good spurt upto 9,730-9,890 level with downside support coming in at 9,400.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities believes that Nifty is now heading towards the immediate resistance of 9730-50 levels (trend line resistance and previous opening downside gap of 4th May). Hence, one may expect minor profit booking at the highs, which is likely to be a buy on dips opportunity. The short term trend of Nifty continues to be positive. The next upside levels to be watched around 9750-9800 in coming sessions. Any downward correction towards 9400 could be a buy on dips opportunity for the next week.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities believes that Nifty is now heading towards the immediate resistance of 9,730-50 levels (trend line resistance and previous opening downside gap of May 4). Hence, one may expect minor profit-booking at the highs, which is likely to be a buy on dips opportunity. The short term trend of Nifty continues to be positive. The next upside levels to be watched around 9,750-9,800 in coming sessions. Any downward correction towards 9,400 could be a buy on dips opportunity for the next week.
According to Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, on Monday, local indices will follow the world markets trend as the outcome of the press conference by Trump will hold key for traders looking for clarity on the decision. The strategy should be to buy on dips instead of chasing Nifty at higher levels. The resistance exists at 9600, 9700 and at 9900 levels. Supports would be seen at 9450 and 9350 level. Monthly formation of the market is positive and bullish.
According to Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, on Monday, local indices will follow the world markets trend as the outcome of the press conference by Trump will hold key for traders looking for clarity on the decision. The strategy should be to buy on dips instead of chasing Nifty at higher levels. The resistance exists at 9,600, 9,700 and at 9,900 levels. Supports would be seen at 9,450 and 9,350 level. Monthly formation of the market is positive and bullish.
Rakesh Patil
first published: Jun 1, 2020 07:55 am

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