Concerns over rising COVID-19 cases and its expected prolonged impact on the economy of the world continue to remain as a threat to the markets.
To put things into perspective, we can expect the prices to trade in a range of 10,900 to 11,399 with a positive bias in the coming days.
With CRB commodities index bouncing off from support zone, action back home in metal stocks is likely to be positive.
As the index seems to be in a no-trade zone, it will be prudent to wait for more signs of strength before initiating long positions, Mazhar Mohammad of Chartviewindia.in has said.
Avenue Supermarts, Arvind, Atul Auto, Aditya Birla Money, Bharat Dynamics, Birla Corporation, Dhanlaxmi Bank, Shalimar Paints, SpiceJet and Trident are among the stocks whose limit has been revised from 10 percent to 20 percent.
Given that India will remain a growth market in the long-term one cannot neglect growth stocks for a prolonged period of time, Jyoti Roy advised.
Experts are of the view that investors should trade with caution, and a more sustainable move can be seen only a close above 11225. Immediate support is placed at 11,100 levels.
Among the sectors, the midcap index gained over a percent while the IT and pharma sectors ended in the red.
Bank Nifty should witness an upward breakout as multiple higher bottoms in the range of 21,100-21,300 levels and the event of the credit policy is behind.
Key support level for the Nifty is placed at 11,132.73, followed by 11,065.27. If the index moves up, the key resistance levels to watch out for are 11,262.23 and 11,324.27.
If the bulls manage to push and hold the Nifty above 11,256, then the eventual target could be a retest of the recent swing high at around 11,341, say experts.
Considering the indecisive formations of the past two sessions, traders should remain cautiously optimistic, with a stop loss below 11,100 level, says Mazhar Mohammad of Chartviewindia.in.
Mild profit booking was seen in telecom (down 0.3 percent), capital goods (down 0.29 percent) and power (down 0.09 percent) stocks.
Generally, the auto sector and related segments benefit from interest rate cut due to lower EMIs.
If there is a sharp correction around the results, it may be a good entry point for investors from a medium-term perspective. In terms of events, the markets would continue to track the news flow on the availability of vaccine.
Liquidity driven rally has almost completed 78.60 percent retracement of the entire downswing seen from January 2020 top to March 2020 bottom.
Among sectors, IT, metal, pharma and FMCG gained more than 1 percent. BSE Midcap and Smallcap indices rose 0.7 percent and 1 percent respectively.
Key support level for the Nifty is placed at 11,035.23, followed by 10,968.77. If the index moves up, the key resistance levels to watch out for are 11,196.93 and 11,292.17.
Mazhar Mohammad of Chartviewindia.in advised traders to remain neutral on index by adopting a stock specific approach.
Sectorally, the S&P BSE Metal index rose 4 percent, followed by the Auto index gained 1.8 percent, and the S&P BSE Consumer Discretionary was up 1.3 percent.
Experts say market has already run ahead of fundamentals and a correction is due
Derivative data witnessed strong & confident CE writing open interest mounting at 11,100 & 11,200 strikes which could face significant unwinding pressure once the index surpasses 11,100 mark.
At the current market level of Nifty at 11,300 we are not advising any fresh long positions.
Experts say going ahead auto, pharma and chemicals sector look attractive. Analysts name 20 stocks that have a potential to outperform in August. These include Wockhardt, PI Industries and Rallis India
Experts are of the view that any dip towards 10,800 is likely to get bought into and on the upside, resistance is seen around 11,250-11,300 levels.