Moneycontrol
Last Updated : Jun 09, 2020 08:30 AM IST | Source: Moneycontrol.com

Slideshow | Nifty may test 10,500; experts advice ‘buy on dips’

Last week, BSE Sensex jumped 1,863.14 points (5.7 percent) to close at 34,287.24, while the Nifty50 rose 561.9 points (5.8 percent) to end at 10142.2 levels. Here are the experts view on how will market trade in the coming week:

Indian indices rose nearly 6 percent in a week gone by and continued the upward journey for the second week amid positive sentiments among the investors post Unlock-1 announced by the government and positive global markets.
1/11

Indian market rose nearly 6 percent in the week gone by and continued the upward journey for the second week amid positive sentiments among the investors post-Unlock-1 announced by the government along with positive global markets.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Given the sharp rally witnessed over last few days, we may see the Indian markets consolidating or taking a breather, before starting the next leg of rally. Even valuations have turned expensive at 21xFY21E earnings and any negative development on the global front might derail the momentum. Hence, 'Buying on Decline’ would be a better strategy over the next few weeks. Technically, immediate hurdle for index is placed at 10300 and then 10500 zone while support exists 10000 then 9950-9890 zones.
2/11

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Given the sharp rally witnessed over the last few days, we may see the Indian markets consolidating or taking a breather, before starting the next leg of the rally. Even valuations have turned expensive at 21xFY21E earnings and any negative development on the global front might derail the momentum. Hence, 'Buying on Decline’ would be a better strategy over the next few weeks. Technically, the immediate hurdle for the index is placed at 10,300 and then 10,500 zone while support exists 10,000 then 9,950-9,890 zones.

Vinod Nair- Head of Research- Geojit Financial Services | Investors are banking on a global economic recovery, fuelled by central bank policy measures to support the respective economies. Investors need to be a bit cautious since valuations are running high and the expected recovery is not yet visible in the numbers.
3/11

Vinod Nair- Head of Research- Geojit Financial Services | Investors are banking on a global economic recovery, fuelled by central bank policy measures to support the respective economies. Investors need to be a bit cautious since valuations are running high and the expected recovery is not yet visible in the numbers.

Sumeet Bagadia, Executive Director at Choice Broking | Nifty took the support from its large cap constituents to settle its closing above 10,100 level. At present level, downside support comes at 9,980 while upside resistance comes at 10,260.
4/11

Sumeet Bagadia, Executive Director at Choice Broking | Nifty took the support from its largecap constituents to settle its closing above 10,100 level. At the present level, downside support comes at 9,980 while upside resistance comes at 10,260.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities | The previous couple of sessions minor decline after a sharp rise of one week signals an inherent strength in Nifty and one may expect further upside in the near term. Nifty closed above the key overhead resistance of 10,000 levels (according to weekly/monthly timeframe charts), as per weekly closing. This pattern indicates an emergence of strong upside momentum in the market and lack of selling participation after a sharp rise. The formation of long bull candle on the weekly chart signal a decisive upside breakout of the hurdle (10K) and one may expect further upside in the next week. The next upside levels to be watched around 10,550-10,600 in one week. Immediate support is placed at 10,050.
5/11

Nagaraj Shetti, Technical Research Analyst, HDFC Securities | The last couple of sessions minor decline after a sharp rise of one-week signals an inherent strength in Nifty and one may expect further upside in the near term. Nifty closed above the key overhead resistance of 10,000 levels (according to weekly/monthly timeframe charts), as per weekly closing. This pattern indicates emergence of strong upside momentum in the market and lack of selling participation after a sharp rise. The formation of a long bull candle on the weekly chart signal a decisive upside breakout of the hurdle (10K) and one may expect further upside in the next week. The next upside levels to be watched around 10,550-10,600 in one week. Immediate support is placed at 10,050.

Nifty50
6/11

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | Technically, Nifty is heading for the levels of 10,300 and 10,500 if it crosses 10,180. Till then Nifty may consolidate between the range of 10,180 and 9,850. The strategy should be to buy on dips.

Sanjeev Zarbade, VP PCG Research, Kotak Securities | Investors should be watchful now as weak economic growth coupled with premium near-term valuations could be headwinds for the market.
7/11

Sanjeev Zarbade, VP PCG Research, Kotak Securities | Investors should be watchful now as weak economic growth coupled with premium near-term valuations could be headwinds for the market.

Sensex_Nifty
8/11

Ajit Mishra, VP - Research, Religare Broking | We reiterate our positive yet cautious view, citing immediate hurdle around 10,250 in Nifty. We feel the banking index still has steam left and that could help the index to inch higher alongside others. However, any negative development on the global front might derail the momentum. Traders should continue with “buy on dips” approach with a focus on stock selection.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments | 10,200 holds a lot of importance as it would outlay the trend for the next couple of months. If we are able to go past 10,200, we could move all the way to 10,500 and beyond. Next week would be the trend decider for the rest of the June series.
9/11

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments | 10,200 holds a lot of importance as it would outlay the trend for the next couple of months. If we are able to go past 10,200, we could move all the way to 10,500 and beyond. Next week would be the trend decider for the rest of the June series.

Dalal Street
10/11

Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors | Nifty’s movement of higher highs with higher lows remains. On the lower side, crucial support is seen near 9700 marks and any decisive move below this zone can push the index lower towards previous swing pivot placed around 9300 marks.

Nilesh Ramesh Jain, Derivative analyst- Equity Research at AnandRathi | The market extends its gain for the second consecutive week where Nifty formed a big bullish candle on the weekly scale. Nifty also surpassed its previous swing high of 9,889 and ended above 10,000 levels. Now, if Nifty manages to sustain above 10,200 levels which is the key resistance, then we can expect a continuation of a current pullback towards 10,400 levels.
11/11

Nilesh Ramesh Jain, Derivative analyst- Equity Research at AnandRathi | The market extended its gain for the second consecutive week where Nifty formed a big bullish candle on the weekly scale. Nifty also surpassed its previous swing high of 9,889 and ended above 10,000 levels. Now, if Nifty manages to sustain above 10,200 levels which are the key resistance, then we can expect a continuation of a current pullback towards 10,400 levels.

First Published on Jun 9, 2020 08:30 am
Sections