Indian Stock Market Outlook by Epic Research

Indian Stock Market Outlook by Epic Research

Indian markets had a strong week and market experts are looking forward to another week of strong action as companies will announce quarterly results. Market expectations from Epic Research follow...

Nifty rebounded as buying from lower levels kicked in validating the "Buy on Dips" Set up for coming days. It is also pleasant for traders to see that a retest of 50 Days MA was seen which Nifty exactly touched and bounced back. Though we are seeing overhead resistance on weekly charts which is 20 MA at 11374. With current structure we believe one important retest of previous supports is done and hence these lower levels of 11100 - 11200 should act as a base for an upside to 11740.

It was a bearish start since we have had various negative cues to deal with right from S&P500 in its fourth consecutive week of losing gains along with Eurozone recovering from biggest weekly loss since Oct 18. Global markets are looking forward to the outcome of trade talks. The economic data from the US has been promising in last weeks with unemployment at multi decade low and Non farm payrolls rising in September versus August.

Back home Indian equity market rebounded taking support at 50 days MA which was very much needed. A valid retest of previous supports technically is a sign of conviction for the trend to remain. the sentimental change that was seen in the market on 20th Sep. These lower levels need to be safeguarded. The trend strength indicators are still above the key levels which shows the trend may come into play any time while 20 days MA has turned its direction on the positive side. The bearish 50 days MA is flattening out which is also a good indication for this trend to sustain and Nifty to move higher.

Earnings season has brought the volatility back and we may see it being elevated in sectors and stocks in coming days. TCS has reported muted net profit for the year with an increase of 1.8% while the revenue did jump 5.8%. Also, the growth in double digit may not be sustained in the current fiscal due to slowdown in the global economy.

We may see coming week to be further volatile with big names like Reliance , Ambuja, Wipro, ACC and Zeel coming out with quarterly numbers. Crude prices have been stable but OPEC is further voicing production cuts, downgrades of Indian GDP to 5.9% by Moody's and quarterly results.

We suggest buying Nifty in the range of 11200 - 11300 for an upside to 11450 - 11600.

Analyst Views: