Indian Market Outlook by TradingBells
Indian markets have been firm during December and January has started on a positive note. The quarterly results will start during the first week of 2020 and market participants are expecting better performance as companies will be paying less of taxes.
The market is in bullish momentum but geopolitical tension acting as a speed breaker for the market where if this geopolitical tension doesn't escalate further then we can expect the market to resume its uptrend in next week while if the situation becomes worse than near term texture of the market may become weak. Crude rallied and Rupee under pressure due to geopolitical tension and this will remain a key headwind for next week also. In terms of domestic cues, Q4 earnings to kick in next week where in terms of important earnings, Infosys will post its results on Friday.
After an underperformance last year, Midcap and Smallcap started to outperform at the beginning of 2020 and they may continue to outperform ahead of budget.
The construction sector is doing well after FM unveils Rs.102 trillion infrastructure plan to boost growth and this sector may continue to do well in the coming days.
Technically, Nifty is trading in a well-defined trading band of 12300-12100 where if it manages to cross 12300 mark then the market may start next leg of rally towards 12500/12600 level while if Nifty slips below 12100 then near term texture of the market will become where 11800/11700 will be next important support levels.