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Will market see some consolidation? Here is what experts advise

The underlying short-term trend of Nifty continues to be positive. Present volatility and consolidation movement may eventually result in an upside breakout in the next few sessions, says Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

February 08, 2021 / 07:32 AM IST
Sensex
Last week, the Indian benchmark indices rose more than 9 percent on the back positive global cues and supportive domestic events. During the week, benchmark indices touched their fresh record highs, with Sensex crossing the 51,000 mark and Nifty50 usurping 15,000.
Ashis Biswas, Head of Research at CapitalVia Global Research | A decisive breakout above the 15,000 levels would lead to a rally till the levels of 15,230-15,250. Expected 14,730-14,750 level to act as a support zone from the short-term perspective. The momentum indicators like RSI, MACD indicating the market's momentum to continue further.
Ashis Biswas, Head of Research at CapitalVia Global Research | A decisive breakout above the 15,000 levels would lead to a rally till the levels of 15,230-15,250. Expected 14,730-14,750 levels will act as a support zone from the short-term perspective. The momentum indicators like RSI, MACD indicating the market's momentum to continue further.
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities | If we see the rally continuing next week also then market could go into overbought zone. We can expect some more future earnings upgrades as we go ahead into the result season. The 34 companies from Nifty-50 that have declared results so far have reported 34% jump in earnings on a yoy basis. This is way ahead of the 20% earnings growth we were forecasting to come from Nifty-50 in Q3FY21 earnings season. A combination of positive sentiment, positive FII flows and very healthy earnings could keep markets at elevated levels in the near futur
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities | If we see the rally continuing next week also, market may go into overbought zone. We can expect some more future earnings upgrades as we go ahead into the result season. The 34 companies from Nifty-50 that have declared results so far have reported 34 percent jump in earnings on a year-on-year (YoY) basis. This is way ahead of the 20 percent earnings growth we were forecasting to come from Nifty-50 in Q3FY21 earnings season. A combination of positive sentiment, positive FII flows and very healthy earnings could keep markets at elevated levels in the near future.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments | We continue to remain bullish and the Nifty has the wings to achieve 15,200. A buy on dips strategy would be advisable. There is ample scope for the markets to correct during intraday sessions. These dips can be utilised to make fresh long positions for higher targets. This way the risk reward trade off would be favourable.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments | We continue to remain bullish, and the Nifty has the wings to achieve 15,200. A buy on dips strategy would be advisable. There is ample scope for the markets to correct during intraday sessions. These dips can be utilised to make fresh long positions for higher targets. This way the risk reward trade off would be favourable.
Ajit Mishra, VP - Research, Religare Broking | As the major events are behind us i.e. the Union budget and monetary policy meet, the focus will shift back to fundamentals as well as global cues. We might see some consolidation in the index early next week, so there’ll be no shortage of trading opportunities on the stock-specific front. Traders should align their positions accordingly and avoid contrarian trades.
Ajit Mishra, VP - Research, Religare Broking | As the major events are behind us i.e. the Union budget and monetary policy meet, the focus will shift back to fundamentals as well as global cues. We might see some consolidation in the index early next week, so there’ll be no shortage of trading opportunities on the stock-specific front. Traders should align their positions accordingly and avoid contrarian trades.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities | The underlying short term trend of Nifty continues to be positive. Present volatility and consolidation movement could eventually result in an upside breakout in the next few sessions. The next upside levels to be watched at 15,475, which is 1.618% Fibonacci extension. Immediate support is placed around 14,800-14,750 levels.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities | The underlying short term trend of Nifty continues to be positive. Present volatility and consolidation movement could eventually result in an upside breakout in the next few sessions. The next upside levels to be watched at 15,475, which is 1.618% Fibonacci extension. Immediate support is placed around 14,800-14,750 levels.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going ahead, we believe the market momentum may continue with the focus now back to fundamentals, viz. corporate earnings. The 3QFY21 earnings season has maintained the momentum of the 2QFY21 results season. Nifty profits for the 30 companies that have posted their results have grown 23 percent YoY (v/s exp. of 4 percent growth). Government focus on fiscal expansion and capex spending augurs well to revive the long-anticipated private investment cycle. We expect the earnings momentum to sustain with further revival in the economy, the number of COVID-19 cases being contained, and the benefit of a low base ahead. The budget along with strong corporate commentary, reaffirms the positive long term structure of the market.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going ahead, we believe the market momentum may continue with the focus now back to fundamentals, viz. corporate earnings. The 3QFY21 earnings season has maintained the momentum of the 2QFY21 results season. Nifty profits for the 30 companies that have posted their results have grown 23 percent YoY (v/s exp. of 4 percent growth). Government focus on fiscal expansion and capex spending augurs well to revive the long-anticipated private investment cycle. We expect the earnings momentum to sustain with further revival in the economy, the number of COVID-19 cases being contained, and the benefit of a low base ahead. The budget along with strong corporate commentary, reaffirms the positive long term structure of the market.
Rakesh Patil
first published: Feb 8, 2021 07:32 am

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