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Apart from quarterly earnings by market heavyweight TCS, Indian inventory market subsequent week will take cues from key macro indicators like IIP knowledge and inflation, progress on monsoon and developments on the COVID entrance, say analysts. TCS will announce its outcomes on 9 July. Supported by optimistic international markets, benchmark inventory market indices Sensex and Nifty posted over 2% acquire final week to shut close to four-month highs on Friday. Both indexes notched their third straight weekly acquire after they closed at 36,021 and 10,607 respectively on Friday.
According to Sanjeev Zarbade, VP PCG Research, Kotak Securities, “Risks to the markets emanate from further spiraling of infections and flare-up on Indo-China border.”
Analysts say that Nifty faces sturdy resistance within the 10650-10700 zone on the upside.
Dalal Street: Here is what analysts anticipate for subsequent week
Ajit Mishra, VP Research, Religare Broking
“It turned out to be a good week for the bulls as the Nifty index surpassed the major hurdle at 10,550 (200 EMA) on the daily chart and settled with the gains of over two percent. Besides, encouraging cues from the local front viz. improvement in auto sales on MoM basis and an uptick in the manufacturing PMI data also boosted the sentiments. Finally, the Nifty index closed at 10,607.35; higher by 2.1%.”
In the approaching week, contributors can be eyeing key macro indicators like IIP knowledge, CPI and WPI inflation. Besides, the progress of monsoon and developments on the COVID entrance may also be in focus.
“On the earnings front, IT major, TCS, will announce its results on 9 July. Interestingly, the stock has witnessed tremendous buying interest in the last two weeks and reached closer to its record high before the results.”
“We expect Nifty to take a breather around 10,750 level, after the three successive weeks of advances. Though the benchmark is inching higher gradually, the underperformance of the banking pack is still a major concern. We advise keeping a close watch on the banking index for the sustainability of the prevailing up move. Meanwhile, traders should maintain their focus on stock selection and risk management.”
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
“Nifty is at the moment nearing a key overhead resistance round 10650-700 ranges, however there isn’t any indication of any reversal sort sample on the highs. The optimistic sequential motion like larger tops and bottoms continued on the every day chart and Nifty is within the strategy of forming a brand new larger prime of the sequence. Still there isn’t any affirmation of any larger prime reversal on the highs.
Nifty as per weekly chart shaped an extended bull candle, that has engulfed the small vary excessive wave sort candle sample of final week. Nifty is now positioned on the key resistance of 10650 on the weekly chart as per change in polarity (earlier swing low of Jan-Feb and Aug-Sept 2019)
The brief time period pattern of Nifty continues to be optimistic. The uneven motion on the upside might proceed within the early a part of subsequent week. The overhead resistance of 10650-10700 is predicted to weigh excessive for the Nifty in subsequent week. Hence, minor revenue reserving from the highs is probably going. A sustainable transfer solely above 10700 might open up subsequent upside targets of 11000-11200 within the subsequent couple of weeks.”
Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote
“Nifty 50 after forming a spinning top candle in the previous week has rallied swiftly. The index is now hovering around 10600 mark which had acted as strong support on the way up and might turn into a crucial resistance. Each leg of the rally from March till now is getting narrower in the price range and the whole rally has occurred in the form of a rising wedge pattern which is bearish and might be nearing its termination. Though there is a lot of optimism on the Street and global equities on the hope of positive developments on drug trials, we assume the market is overbought in the short term and expect limited upside. Going ahead we suggest investors to remain cautious as any negative development on global equity might trigger a risk aversion sell off. Support for the index is now placed at 10200.”
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