“We need to focus more on midcap and smallcap stocks. In the coming week, we are expecting profit-taking in financial stocks and outperformance in technology stocks,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities.
Sensex and the Nifty gained 1.7 percent during the week, buoyed by falling crude prices and a decline in domestic bond yields. Autos were top losers while banks, capital goods and healthcare were top gainers.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas: Nifty is stuck in a consolidation range for the last few weeks. On the higher side, the psychological mark of 18,000 is acting as a cap. On September 9, the index moved up to test this barrier where the selling pressure started building up again as it inched closer to 18,000. Unless that level is surpassed, the Nifty is expected to stay in consolidation mode for the next week. Internal structure shows that the index is preparing for a down move and is expected to test 17,500 in the coming sessions. The broader market is also poised to consolidate recent gains.
Rupak De, Senior Technical Analyst at LKP Securities: Nifty has given a falling trendline breakout on the daily chart. Besides, the index value has moved above its crucial resistance of 17700. The daily RSI has entered into a bullish crossover. The trend for the short term looks positive. On the lower end, support is visible at 17700. Resistance on the higher end is seen at 17900-18100.
Ajit Mishra, VP-Research, Religare Broking: We maintain our bullish view on the market and suggest continuing with the buy-on-dips approach. The recent rebound in the US markets is further adding to comfort. As we are seeing buying interest across the board, the focus should be more on best-performing sectors liked banking, financials, auto and FMCG, and remaining selective about others.
Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities: Although the market pared gains, Sensex hitting the psychological 60000 mark intra-day signifies investors’ faith in the domestic economy. While stock markets may look a bit pricey, India’s long-term growth potential does bring some stability at a time when key economies are staring at recession. On the dismissal of 18000, the Nifty can climb to the level of 18300 while it will find support at 17800 and 17600 levels. Below the same, Nifty would fall to 17400 or 17200 levels. We need to focus more on midcap and smallcap stocks. In the coming week, we are expecting profit-taking in financial stocks and an outperformance in technology stocks.
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services: Domestic equities edged higher amid positive global cues. Although Indian equities closed positive, they faced resistance below 18000 levels as markets failed to sustain yesterday’s momentum and fell from day’s highs. Switching out from recent outperforming sectors led to profit-booking in the market yesterday. Fresh buying was witnessed in IT and metals while profit-booking was seen in cement, real estate, and consumer stocks. Global markets too are trying to shrug off growth and inflation concerns and are likely to make a positive weekly close after three consecutive weeks of losses. Domestic markets are likely to remain firm on the back of healthy macro data, strong institutional flows, and improvement in festive demand. Expect sectors linked to capital expenditure, consumption and credit growth to do well over the next few weeks.
Vinod Nair, Head of Research at Geojit Financial Services: Bulls dominated domestic markets as indices moved in tandem with global markets. Global indices edged higher as investors reassessed the outlook for monetary policy following ultra-hawkish remarks from the Fed chair and 75 basis point rate hikes by European Central Bank. While the energy crisis in Europe continued to haunt investors, Chinese policymakers’ renewed efforts to strengthen its economy boded well for Chinese bourses. In an effort to stabilise declining oil prices, OPEC+ opted to cut back on output given the faltering global growth outlook. Domestic investors held an upbeat outlook, bolstered by strengthening economic statistics, continued foreign institutional investor inflows, and rising corporate activity. Banking and consumption stocks remained top picks during the week. The direction of the market in the week ahead will be determined by cues from global markets as well as important macroeconomic data points, such as inflation and manufacturing & industrial production data, to be released next week. Domestic retail inflation is expected to rise to 6.9 percent in August from 6.71% in July.
Sandip Das
