September quarter earnings, updates on the stimulus package and upcoming presidential elections in the US and reports on COVID-19 cases in Europe will remain on investors' radar.
Experts are of the view that after the recent run-up, the market could turn cautious in the lead-up to the US elections in November and the October series expiry in the coming week.
This week, BSE Sensex rose 702.52 points or 1.75 percent to close at 40,685.50, while the Nifty50 added 167.95 points or 1.42 percent to end at 11,930.4 levels.
Mazhar Mohammad of Chartviewindia.in advised traders to remain neutral on long side whereas intraday traders can short below 11,900 and look for a modest target of 11,830.
Neeraj Chadawar of Axis Securities believes that market volatility is likely to provide good opportunities for Midcaps and Small caps.
Overall price and data setup suggests bounce but multiple hurdles and supply pressure at higher zones could restrict its upside momentum with higher volatility, says Chandan Taparia of Motilal Oswal.
Cochin Shipyard shares rallied 10 percent to close at Rs 359.55 on the NSE today, despite correction in the overall market.
Shrikant Chouhan of Kotak Securities said the strategy should be to buy Nifty if it crosses 11,950 levels
Mazhar Mohammad of Chartviewindia.in advised traders to remain stock specific by avoiding index bets till Nifty emerges out of the said trading range.
Failure of the Nifty to head to 12,050 could lead to another drop to 11,750 levels, says Shrikant Chouhan of Kotak Securities
Traders should remain neutral by adopting a stock-specific approach, Mazhar Mohammad of Chartviewindia.in has said.
As the September quarter earnings bouyed market sentiment and increased hope for strong earnings growth in coming years, brokerages upgraded majority of quality stocks in current month.
From the next 2-3 years perspective, we are bullish on IT, Healthcare and Speciality Chemicals. Investors can benefit from these themes which are playing out well currently and it is crucial to build a portfolio.
Any minor decline/consolidation could be a buy on dips opportunity for the short term, Nagaraj Shetti of HDFC Securities said
The Nifty is moving in a narrow range of 11,800-11,950 levels. Above 12,050, the Nifty can move to 12,200 in a short period of time, say analysts.
As trade seems to be sideways, Mazhar Mohammad of Chartviewindia.in advises traders to remain neutral on the index.
One-sided growth makes people overestimate their ability to predict market or stocks and misconstrue luck with analysis or understanding, says Wealthyvia.com founder Pritam Deuskar.
Stocks that gave double-digit returns consistently in the last quarter of the previous three calendar years include names like DB Realty, GMM Pfaudler, Dolat Investments, Alkyl Amines, Manappuram Finance etc.
Stocks like Amber Enterprises which rose nearly 13 percent, Federal Bank gained more than 7 percent, and Spencer Retail closed with gains of over 3 percent were some of the stocks in focus on Monday.
If Nifty50 moves up, the key resistance levels to watch out for are 11,907.33 and 11,941.67.
Traders should remain neutral and focus on stock-specific opportunities, as the index is neither showing strength nor weakness at this juncture, says Mazhar Mohammad of Chartviewindia.in.
Edelweiss suggests that some market correction cannot be ruled out and one must hedge by buying the December 2020 put option of Nifty at the 11,000 levels.
Vineeta Sharma, Head of Research at Narnolia Financial Advisors said the robust results posted by IT companies were ahead of their estimates given the increased demand for digital services in the times of COVID-19.
The index has been trading with heavy gains and is struggling to hold 11900 levels. Hence, 11850/11900 is likely to remain an important resistance zone in the short term.
According to pivot charts, the key support level for the Nifty is placed at 11,690.27, followed by 11,618.03.