While the bias is on the upside and there is still room for the index to conquer 16100, experts recommend a buy-on-dips approach.
The investors who lost money in the crisis have started to recover their losses and the next six-month period would also give good opportunities to the new investors, said Garg
We think that this time in July, the index will give the breakout of 10,500-10,550 level with the good support of 10050-10000, afterwards, the target would be at 11,040 levels.
The two-third of the stocks from derivatives segment saw decent selling pressure in June series, which does not bode well for the bulls.
Equity benchmarks extended rally in late trade with the Nifty ending at fresh 52-week closing high on Thursday, the last day of July series.
On the cash market, don't go by that large sell number. That is concealing more than it is revealing.
Infosys, NTPC, Tata Motors, Sun Pharma and Wipro are top gainers in the Sensex. Among the losers are GAIL, Vedanta, BHEL, Lupin and Axis Bank.
This is a start of a new series, July series. June series was very volatile. It was an important series it may well have established a bit of a bottom for the market at around 7,900.
The next important cue for the markets will be the results season, followed by the monsoon session of the Parliament, says Taher Badshah of Motilal Oswal AMC. He will also be watching out for some guidance from the Reserve Bank if monsoon continues to be good.
Sensex dipped 285.92 points on Thursday to close at 285.92, and the Nifty at 5907.50, down 83 points.
The July series might end with 400-points gains but could also end with 150 basis points jump in bond yields. However, 6,100 still seems like a bit of a mountain to climb as we enter August, said Udayan Mukherjee.
CNBC-TV18's Udayan Mukherjee expects the market to cheer up today after gas price hike and some global cues supported the market on Thursday.
The June Nifty series may have disappointed the street by ending down around 7 percent but experts are keeping a positive stance on July series, citing significant short covering seen towards the end of series.
F&O cues: Highest open interest (OI) buildup was seen at Nifty June 5700 call & Nifty June 5500 put on Wednesday ahead of expiry Thursday.
Jitendra Panda of Future Capital expects the July F&O series to expire around 5,120 levels. "At 5,200 lot of calls have been bought by FIIs and we are seeing premium among the August series. So, all together, put together 5,120 where I would say the expiry should come in," he explained in an interview to CNBC-TV18.
Market analyst Ambareesh Baliga believes that given the policy inaction and political issues crossing 5,200 on the upside would be a herculean task for Nifty.
The market offered no surprises today because it is closely clinging to that 5100 level and that is what is expected before expiry, said Udayan Mukherjee, Managing Editor of CNBC-TV18.
In an interview with CNBC-TV18, Sangeeta Purushottam, managing director of Nine Rivers Capital spoke about her reading of buzzing stocks and the road ahead.
Siddharth Bhamre of Angel Broking believes that the global factors would decide the future course of the market. "We will be more on the mercy of global cues rather than internals of markets because internal market statistics are not working accordingly," he said in an interview to CNBC-TV18.
Even as the July series has not been looking good so far, VK Sharma of HDFC Securities believes that the series may not close below 5150.
Indian market is waiting for RBI's policy action, corporate earnings and reforms likely after the Presidential poll. Though the market has shown some strength, Vineet Bhatnagar of MF Global is not so optimistic. He warns that the market may drift to 5100-5140 as volatility has bounced back to 15-17% in last few sessions.
Indian market is on an uptrend waiting for the government to announce some reformative measures soon. However, there is also a growing fear that the rally is short lived and will die down soon. Krishna Kumar Karwa of Emkay Global Financial Services, too feels that fundamentals are not supportive of a strong rally from the current levels.
Hemant Thukral of Aditya Birla Money does not expect much volatility today like in the last two series. In his view, Nifty may remain in a range of 5120-5180.
The June series has been a good one and Vineet Bhatnagar, MD of MF Global feels that the disinterest present in the last expiry seems to have faded away. According to him FII open interest in Nifty is higher than the three month average.
As the June series comes to a close today, expectations are ripe as to what the market can look forward to in July. Ambareesh Baliga, COO, Way2Wealth says he has been quite bullish in the past couple of weeks and continues to be so.