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Slideshow | Market Will Focus On Global Cues, Earnings; Nifty May Test 8,300, Say Experts

Check out how the market will react to the domestic and global cues in this week.

May 26, 2020 / 08:32 AM IST
On Friday, the market ended on weak note with Sensex closed the day 260 points, or 0.84 percent, lower at 30,672.59 while Nifty finished with a loss of 67 points, or 0.74 percent, at 9,039.25.
On Friday, the market ended on a weak note with Sensex closing the day 260 points, or 0.84 percent, lower at 30,672.59 while Nifty finished with a loss of 67 points, or 0.74 percent, at 9,039.25. Here is what experts have to say regarding the market movement in short to mid-term"
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors said that the Nifty has given bullish crossover of 20 DMA and 50 DMA in the last week suggesting bullish movement in mid-term; however confirmation will come only above 9,200 marks which can take prices higher towards previous swing high placed at 9,550 marks. On a lower side crucial support of an unfilled gap lies around 8,750 and any decisive move below this zone will trigger fresh selling which can push Nifty towards 8,300 marks.
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors said that the Nifty has given bullish crossover of 20 DMA and 50 DMA in the last week suggesting bullish movement in mid-term. However, a confirmation will come only above 9,200 marks which can take prices higher towards previous swing high placed at 9,550 marks. On a lower side crucial support of an unfilled gap lies around 8,750 and any decisive move below this zone will trigger fresh selling which can push Nifty towards 8,300 marks.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities feels that the short term trend of Nifty is negative with range bound action. Some more minor weakness is likely in the early next week, but, there is a higher possibility of a sharp upside bounce from the lower levels. Immediate support is placed around 8,800-8,850.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities feels that the short term trend of Nifty is negative with range-bound action. Some more minor weakness is likely early this week, but, there is a higher possibility of a sharp upside bounce from the lower levels. Immediate support is placed around 8,800-8,850.
 "In the near term, the market will focus on the global cues and the quarterly results. Investors will closely monitor the development of coronavirus cases and vaccines, US-China relationship, crude oil prices movements and economic policies. Technically, if Nifty manages to sustain above 9,150 levels, then we may see a bounce towards 9,300-9,350 zone. On the flipside, support is placed at 8,900-8,800 zone," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
"In the near term, the market will focus on the global cues and the quarterly results. Investors will closely monitor the development of coronavirus cases and vaccines, US-China relationship, crude oil prices movements and economic policies. Technically, if Nifty manages to sustain above 9,150 levels, then we may see a bounce towards 9,300-9,350 zone. On the flip side, support is placed at 8,900-8,800 zone," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
Ajit Mishra, VP - Research, Religare Broking feels that we may see some rebound next week due to oversold positions in banking and financial space but sustainability would be difficult at the higher levels. Traders should prefer hedged trades and prefer defensive viz. pharma, IT and select FMCG for long trades.
Ajit Mishra, VP - Research, Religare Broking feels that we may see some rebound next week due to oversold positions in banking and financial space but sustainability would be difficult at the higher levels. Traders should prefer hedged trades and prefer defensive viz. pharma, IT and select FMCG for long trades.
Markets - Image: Reuters
According to Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments, the Friday's low of 8,968 would play a pivotal role when markets resume on Tuesday as a break from here could take the markets southward to 8,750-8,800 levels. On the upside, we need to cross 9,178 to see a clear upside direction.
Date: September 25 | Extent of loss: 504 points (1.29 percent)| Reason: Concerns over the health of the economy, news of impeachment inquiry against US President Donald Trump, tension in the Middle East and uncertainty over the US-China trade deal kept the market under pressure. (Image: Reuters)
"Investors are advised to traded cautiously in this week. Any news regarding the slowdown in number of infections or specific sectoral news will have an impact on the markets," said Vinod Nair, Head of Research- Geojit Financial Services.
Moneycontrol News
first published: May 26, 2020 08:32 am

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