Up move likely to continue, Nifty may test 14,500-15,000 before Budget: Experts

Expect market to remain firm going forward because of the start of earnings season from next week, says Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities.

January 11, 2021 / 08:34 AM IST
Market added 2 percent hitting fresh record high in the first week of the new year on the back of positive domestic and global cues. Last week, BSE Sensex gained 913.53 points or 1.90 percent to end at 48,782.51and while the Nifty50 rose 328.75 points or 2.34 percent to finish at 14,347.25 levels. Here are the views of some market experts on what to expect going ahead:
Market added 2 percent hitting fresh record high in the first week of the new year on the back of positive domestic and global cues. Last week, BSE Sensex gained 913.53 points or 1.90 percent to end at 48,782.51and while the Nifty50 rose 328.75 points or 2.34 percent to finish at 14,347.25 levels. Here are the views of some market experts on what to expect going ahead:
Nagaraj Shetti, Technical Research Analyst, HDFC Securities | The near term trend of Nifty continues to be positive. Friday's upside breakout of small range and a formation of symmetrical pattern on the daily/weekly chart could indicate one more weeks of upmove is likely in the market before showing any downward correction from the highs. The next upside targets to be watched at 14600 and immediate support is placed at 14200 levels.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities | The near term trend of Nifty continues to be positive. Friday's upside breakout of small range and a formation of symmetrical pattern on the daily/weekly chart could indicate one more weeks of upmove is likely in the market before showing any downward correction from the highs. The next upside targets to be watched at 14600 and immediate support is placed at 14200 levels.
Markets - Image: Reuters
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | We could see the levels of 14400/48500 and 14600/49000 on the higher side on the Nifty 50 and BSE Sensex index, respectively. The strategy should be to buy only on major dips as the markets are over stretched and keep reducing weak positions from the portfolio. In case of correction, index may find support at 14200/47800 and at 14000/47500 levels.
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities | Expect market to remain firm going forward because of the start of earnings season from next week. It will be interesting to see how IT stocks react after results as earnings growth of the frontline companies, except for Infosys is expected to be in single digit. The street is expecting IT stocks to sustain at higher levels because of the potential upward revision in future guidance. Overall, we expect Nifty-50 to report 19% earnings growth in Q3FY21 with likely upgrades coming in sectors like, automobiles, auto-ancillaries, metals & mining, cement, select banks and pharmaceuticals. Expect Nifty to go anywhere between 14,500 & 15,000 before the budget.
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities | Expect market to remain firm going forward because of the start of earnings season from next week. It will be interesting to see how IT stocks react after results as earnings growth of the frontline companies, except for Infosys is expected to be in single digit. The street is expecting IT stocks to sustain at higher levels because of the potential upward revision in future guidance. Overall, we expect Nifty-50 to report 19% earnings growth in Q3FY21 with likely upgrades coming in sectors like, automobiles, auto-ancillaries, metals & mining, cement, select banks and pharmaceuticals. Expect Nifty to go anywhere between 14,500 & 15,000 before the budget.
Ajit Mishra, VP - Research, Religare Broking | Next week, participants will be closly eyeing macroeconomic data viz. IIP, CPI and WPI inflation scheduled during the week. Besides, global cues and progress on the vaccine drive will also be in focus. On the earnings front, three other IT majors viz. Infosys, Wipro and HCL Technologies will declare their numbers along with several others. Markets will first react to the TCS numbers which came after the market hours on Friday. The consistent buying by foreign investors has been ensuring newer record highs in the benchmark despite overbought signals. Going ahead, the upcoming macroeconomic data combined with the signals from the earnings would largely dictate the market trend. We suggest continuing with a sector/stock-specific trading approach as we’re seeing rotational buying across the sectors. However, traders should limit their leveraged positions and avoid contrarian trades.
Ajit Mishra, VP - Research, Religare Broking | Next week, participants will be closly eyeing macroeconomic data viz. IIP, CPI and WPI inflation scheduled during the week. Besides, global cues and progress on the vaccine drive will also be in focus. On the earnings front, three other IT majors viz. Infosys, Wipro and HCL Technologies will declare their numbers along with several others. Markets will first react to the TCS numbers which came after the market hours on Friday. The consistent buying by foreign investors has been ensuring newer record highs in the benchmark despite overbought signals. Going ahead, the upcoming macroeconomic data combined with the signals from the earnings would largely dictate the market trend. We suggest continuing with a sector/stock-specific trading approach as we’re seeing rotational buying across the sectors. However, traders should limit their leveraged positions and avoid contrarian trades.
 Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors | Continuation of bullish crossover of 20 DMA & 50 DMA on daily & weekly time frame and sustainability above 5 DMA & 10 DMA suggests prices can trade higher towards targets of Flag classical pattern on a higher time frame, standing around 14,800. India VIX traded lower the entire last week and closed around crucial strong supports of 20. Rising trend lines plotted using earlier swing highs are showing resistance near 14,600-14,800 zone. At the same time, the upper trend line of Andrew pitchfork is also standing near 14,800 marks suggests Index has the potential to rally towards 14,800 levels. However, any dip below the line of parity, 5 weekly SMA and swing low standing around 14,050 marks will give an early sign of trend reversal.
Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors | Continuation of bullish crossover of 20 DMA & 50 DMA on daily & weekly time frame and sustainability above 5 DMA & 10 DMA suggests prices can trade higher towards targets of Flag classical pattern on a higher time frame, standing around 14,800. India VIX traded lower the entire last week and closed around crucial strong supports of 20. Rising trend lines plotted using earlier swing highs are showing resistance near 14,600-14,800 zone. At the same time, the upper trend line of Andrew pitchfork is also standing near 14,800 marks suggests Index has the potential to rally towards 14,800 levels. However, any dip below the line of parity, 5 weekly SMA and swing low standing around 14,050 marks will give an early sign of trend reversal.
Rakesh Patil
first published: Jan 11, 2021 08:34 am

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