Edited excerpts: Bank of Japan’s policy rate hike and weak data in the US seemed to have spooked the market on Friday with Nifty ending with weekly declines. How do you see the markets trading this week and what could be the likely triggers?
Next week, markets could remain volatile due to the Bank of Japan’s rate hike and weak US data. Key triggers will include upcoming US economic reports, which may impact global sentiment, and any additional central bank announcements from major economies. Corporate earnings reports could also influence market movement, either boosting or weighing on sentiment. Additionally, geopolitical developments might create further market fluctuations. Technical indicators and market trends will be important to monitor for short-term movements.
What are important levels for Nifty and Bank Nifty for this week?
For Nifty 50, watch key support at 24,600 and 24,350 with resistance around 25,100-25,250. For Bank Nifty, important support levels are 51,000 and 50,500, while resistance is around 51,800 and 52,200. These levels are crucial for determining potential market direction.
What is your assessment of the mood among retail traders regarding Sebi’s consultation paper on the derivatives market? Are they appreciating the move or seeing this as a lost opportunity?
The mood among retail traders regarding SEBI’s consultation paper on the derivatives market is mixed. Some view the move positively, appreciating SEBI’s efforts to enhance transparency and regulation, which could lead to a more stable and fair trading environment. However, others see it as a missed opportunity for more radical reforms or simpler trading rules that could have directly benefited retail investors. Concerns about potential increased compliance costs or restrictions may also contribute to dissatisfaction.
Q1 earnings have not been overly encouraging till now and given the expensive valuations as suggested by a section in the market, do you see consolidation going ahead or do you think investor enthusiasm will keep it going like on so many occasions, previously?
We believe there might be both time and price-wise correction in the days to come. As we have previously seen, DIIs are buying at every dip in the market, so the downside may be limited. However, it will be dependent on various factors like geopolitical stability and the US markets. What sectors are you betting on and are PSU stocks in your radar?
We believe defensive sectors like pharma are likely to outperform the market. Yes, we believe there is still more fuel left in the PSU sector, and one can utilise any sizeable dip in this space to accumulate quality names. Among the top gainers this week were Zomato, Adani Energy and Adani Wilmar while Aegis Logistics, Birlasoft and Macrotech Developers were among major laggards. What should investors do with them?
— Zomato: Continue to ride the trend with a stop at 230.
— Adani Energy: Continue to hold with a stop at 1200.
— Adani Wilmar: Avoid fresh longs, but for existing positions, hold with a stop at 360.
— Aegis Logistics: Exit, as we may see the stock test the 700 level.
— Birlasoft: Avoid fresh longs; for existing positions, place a stop at 580.
— Macrotech Developers: Avoid fresh entry and exit from existing long positions.
Also Read: Bharti Airtel Q1 Preview: Revenue may grow by 3% YoY to Rs 38,488 crore, outlook positive
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