Traders are advised to remain light for a while and the ideal strategy would be to look at the individual stocks than the benchmark index, suggest experts
Indian market ended lower last week with with BSE Sensex dropping 107.97 points to close at 55,329.32, and the Nifty50 down 78.6 points at 16,450.5 levels. Here’s what experts have to say about this week:
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services | Going ahead, global cues will be closely watched for further market direction. With cases of Delta variant rising globally and many countries implementing fresh lockdowns, this is becoming the biggest worry for the markets at the moment along with the nervousness around US Fed taper talks. Further, the economic slowdown and the regulatory clampdown in China also poses a risk. Even Nifty valuations at 21x 12m forward EPS remain rich and thus consistent delivery on earnings expectations going ahead becomes crucial. Hence, given the selling pressure in the broader market, traders should be cautious and adopt stock-specific approach while investors can take advantage of this scenario and build their positions from the medium to long term perspective. From the long term perspective, the overall trend of the market remains positive led by the opening up of the economy, improving economic data points and pickup in vaccinations.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking | For the coming week, the cluster of supports at 16350 – 16250 – 16150 are to be observed closely. As of now, there is no indication of Nifty sliding below the lower range of this support zone. But you never know how global developments pan out. On the flip side, the real strength in Nifty is possible only after convincingly surpassing the band of 16500 – 16600. Also, the Bank Nifty and the Nifty Midcap 50 index are trading at make or break levels. Since it is the monthly expiry week, it would be interesting to see how things unfold. Traders are advised to remain light for a while and the ideal strategy would be to look at the individual stocks than the benchmark index.
Samco Research | Markets are anticipated to remain buoyant in the coming week owing to a spate of encouraging July recovery signs. Furthermore, investors may use the monthly expiry rollover data to evaluate momentum and predict if markets will continue their march to fresh highs in September. Moreover, the GDP data for the United States might also impact market sentiment globally. Investors are encouraged to choose only stocks that are fundamentally sound.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | Technically, the Nifty has formed a shooting star kind of reversal formation and at the same time momentum indicators also suggest a temporary overbought situation. However, the medium-term texture remains bullish and any meaningful short-term correction would be an opportunity to enter into the long side. On the downside, 16350 and 20 day SMA or 16200 would be the key support zone. On the other hand, the 16600/16665 level could act as an immediate hurdle for the index. If the index slips below the 16200 levels or 20 days SMA, the medium-term uptrend could be vulnerable.
Ajit Mishra, VP – Research, Religare Broking | The possibility of the US Fed’s stimulus tapering would start as early as this year spooked the markets across the globe including ours. Besides, participants also took note of a sharp rise in global COVID cases, adding to the pressure. We may see a further slide next week and the Nifty may test level closer to 16,200. In case of a rebound, 16,550-16,700 zone would act as hurdles. Considering the scenario, we suggest maintaining positions on both sides and prefer index majors over the others.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research | The market shows that it is going to be crucial for the short-term market scenario to sustain above the 16500 Nifty50 Index level. Early signs have been observed of reversal in the market with deviation occurring in Nifty 50, Nifty mid cap, and Nifty small cap hence, the traders are advised to refrain from building a new buying position until we see further improvement in the market breadth. If the market is unable to sustain the level of 16500, the market can witness lower levels of 16350.
Rakesh Patil
