Technical Outlook for NSE Nifty and Indian Markets by SAMCO Research
Indian markets have been trading strong over the last few weeks and buying at lower levels has increased confidence among traders and market participants. However, some of the market experts TopNews has talked to, have expressed concerns about Indian economy and chances of correction in Indian stocks. The markets are currently looking forward to quarterly results and we could see stock specific action in coming weeks. A technical outlook for NSE Nifty by SAMCO Research follows......
Nifty50 formed a hanging man candlestick pattern on the weekly chart after a narrow range candle in the previous week. This gives an impression that the market is tired of gains and is witnessing a tug of war between bulls and bears, waiting for a bearish trigger. BankNifty which is a significant driving force for the market and benchmark indices has witnessed a big bearish candle after a shooting star in the last week. We believe the range of 10900 and 10950 can unfold as a crucial hurdle for Nifty and expect limited upside. Immediate support on the downside is now placed at 10570 and break of the same may lead to downward decent.
Expectation for the week
India Inc. will carry on with their pseudo-event of earnings season in the coming weeks. The bellwether of financial service sector, HDFC Bank would come out with their quarterly numbers on Saturday. It is expected that Q1FY21 may not see much pain from the financial space since the real dent will only be felt post the moratorium ends. Hence, markets are expected to flex their muscles in a range bound manner. Going ahead, intraday traders can follow a buy on dips strategy in the IT sector and for companies coming out with bad earnings performance. Investors are still advised to stay on the sidelines and wait for market dips before investing. Nifty50 closed the week at 10,901.7, up by 1.2%.