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Stay cautious! Budget expectations, Q3 earnings and foreign flows to dictate market trend: Analysts

Momentum indicators like RSI, MACD indicate a small correction in the markets, says Ashis Biswas, Head of Research at CapitalVia Global Research.

January 18, 2021 / 07:40 AM IST
sensex
Benchmark indices ended marginally higher last week on mixed global and domestic cues. BSE Sensex gained 252.16 points, or 0.51 percent, to end at 49,034.67 while Nifty50 added 86.45 points, or 0.60 percent, to finish at 14,433.70. Here's what analysts have to say about this week:
Vinod Nair, Head of Research at Geojit Financial Services | Investors can resort to profit booking as the near future trend of the market will depend on budget expectations, stock wise Q3 result and foreign inflows.
Vinod Nair, Head of Research at Geojit Financial Services | Investors can resort to profit booking as the near future trend of the market will depend on budget expectations, stock wise Q3 result and foreign inflows.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments | Caution must be exercised at the current juncture as the breaking of 14350 could result in a precarious situation where the Nifty can go down to test 14000 almost instantaneously. On the upside, 14700 is the key resistance level to watch out for and unless we do not get past that, we will not resume this uptrend. We should get a clearer picture on the Nifty's direction in the coming week.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments | Caution must be exercised at the current juncture as the breaking of 14350 could result in a precarious situation where the Nifty can go down to test 14000 almost instantaneously. On the upside, 14700 is the key resistance level to watch out for and unless we do not get past that, we will not resume this uptrend. We should get a clearer picture of the Nifty's direction in the coming week.
Ashis Biswas, Head of Research at CapitalVia Global Research | If the market closes below the levels of 14380, we might see a correction till the levels of 14180-14200. The momentum indicators like RSI, MACD indicating a small correction in the markets.
Ashis Biswas, Head of Research at CapitalVia Global Research | If the market closes below the levels of 14380, we might see a correction till the levels of 14180-14200. The momentum indicators like RSI, MACD are indicating a small correction in the markets.
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Ajit Mishra, VP - Research, Religare Broking | We’ve been maintaining our positive yet cautious stance on market citing the possibility of profit-taking/consolidation in markets and reiterate the same view for Monday. Since the overall trend is up, it’s prudent for the participants, those who were sitting on the sidelines for correction, to utilise this phase and buy quality stocks on dips. On the other hand, it would be difficult for traders to manage positions as both indices and stocks usually see volatile swings during such phase and the beginning of earnings season has further added to the choppiness. It’s prudent to avoid naked leveraged positions for now and prefer hedged strategies. In case of a further slide, Nifty would find immediate support at 14,250 and then 14,100 zone.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | In case the Nifty/Sensex breaks the level of 14350/48800, then it could fall to 14000/47500 levels. On the other hand for the market to scale higher it needs to cross 14700/49800 levels, however, the dismissal of 14500/49300 would be positive in the short term. Stay stock-specific till the market is consolidating. Selling short is advisable below the level of 14350/48800. Take a contra bet of taking long/buying positions between 14050/13950 (47500/47700) levels. Keep a final stop loss at 13800/47300.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | In case the Nifty/Sensex breaks the level of 14350/48800, then it could fall to 14000/47500 levels. On the other hand, for the market to scale higher it needs to cross 14700/49800 levels. However, the dismissal of 14500/49300 would be positive in the short term. Stay stock-specific till the market is consolidating. Selling short is advisable below the level of 14350/48800. Take a contra bet of taking long/buying positions between 14050/13950 (47500/47700) levels. Keep a final stop loss at 13800/47300.
Rakesh Patil
first published: Jan 18, 2021 07:39 am

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