Last week, the rangebound market ended lower amid unsupportive global cues and domestic data including rising virus cases. BSE Sensex ended 163.23 points or 0.42 percent lower at 37877.34, while the Nifty50 shed 35.65 points or 0.31 percent to end at 11178.4 levels. Here's what experts are advising for the upcoming week:
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas | On the downside, the Nifty breached the near term support zone of 11,250-11,230 however managed to hold on to its 20 DMA (11171) on closing basis. Going ahead, the index is likely to test the key psychological level of 11000, which is close to its daily lower Bollinger Band.
Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services | Nifty has to cross and hold above 11250 zones to witness an up move towards 11350 then 11400 zones while on the downside support exists at 11100 then 11050 zones.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments | The markets broke 11150 fiercely but managed to hold 11100 on closing basis. Next week would prove to be crucial as we would need to see if 11100 holds. If it breaks, we would have technical parameters suggesting to go short. In order to move up, Nifty would have to get past 11350. Until then the markets would be rangebound with a downward bias.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going ahead, the market volatility is likely to continue, largely mirroring global cues. Investors would look out for fresh triggers amid continued surge in domestic coronavirus cases. On Monday, the market would await outcome of AGR case hearing on the domestic front while on the global front, the US-China weekend meeting would provide some direction. Nifty has to cross and hold above 11250 to witness an up move towards 11350-11400 while the support exists at 11100-11050.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | On a weekly basis, the market closed in negative territory and if the Nifty slips below the 11100 level, it could test the 10900 or 10850 level again. There should be a sell-off strategy for the Nifty if the 11200 and 11250 levels rise. For that, keep the final stop loss at 11300.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities | The short term trend of Nifty has turned down and expect some more weakness in the coming sessions. The crucial lower supports to be watched around 11000-10950 in the next few sessions, before showing any upside bounce from the lows. However, the short term trend of Nifty seems to have reversed, but the intermediate trend remains intact. This is valid as long as the important lower support of 10900 levels holds.
Ajit Mishra, VP Research, Religare Broking | In the coming week, participants will be eyeing the next hearing on the AGR dues, which is scheduled on Monday. And, since we are closely following global markets, developments on the further stimulus package in the US, US-China trade tension would also be on investors’ radar. At the same time, we will continue to see action on the broader front as several companies would be announcing their numbers next week. Nifty has been facing tremendous pressure around 11,350 for the last three weeks and a decline below 11,100 may push the bulls on the back foot. We were anticipating some respite from the banking front but a sharp decline on Friday derailed that momentum. Keeping in mind the scenario, we advise continuing with a stock-specific trading approach and maintaining the leveraged positions hedged.
