Domestic equity markets soared greater in the prior trading week, as benchmark indices nearing their all-time greater. S&P BSE Sensex settled at 50,540 points on Friday when the Nifty 50 ended at 15,175. However, the upward march could face some resistance with Nifty futures on Singapore Exchange trading in the red on Monday morning. Global cues have been also mixed through the early hours of trade. On the charts, Nifty registered a nine-week higher at 15,190 on Friday and closed close to it. “We observe an upside breakout of the downward slopping trend line at 14900, as per week’s close. This is a positive indication,” mentioned Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Global cues: Wall Street ended mixed on Friday with Dow Jones gaining .36%, when S&P 500 closed flat with a unfavorable bias and the tech-heavy NASDAQ closed .48% decrease. Among Asian peers, Shanghai Composite was up in the green when Hang Seng slipped into the red. Japanese stock markets have been up with gains when South Korean Indices have been in the red.
Technical take: “A long bull candle was formed, which indicate a sharp upside bounce from the lower support,” mentioned Nagaraj Shetti. “This pattern seems to have confirmed a sustainable upside breakout of the hurdle and also an upper range (15000-14200) at 15K mark. As per this pattern, a potential upside pattern target of 15800 could open up and this could be achieved over the next few weeks,” he added.
Levels to watch out for: Nearing the month-to-month expiry, analysts think Nifty could rally to prior all-time highs. “Nifty is nicely poised to rally and break above the resistance at 15400-15500 over the next couple of weeks. As we head into May expiry Nifty will try to trade beyond 15200,” mentioned Manish Shah, Founder, Niftytriggers. “Price and pattern break out for the week are very significant from a view of next 6-8 weeks and the upside potential in Nifty is towards 16000-16200,” he added.
FII and DII trades: In the prior week, Foreign Institutional Investors (FII) have been net sellers of domestic securities. Meanwhile, Domestic Institutional Investors (DII) have continued their sustained acquiring of domestic equities.
Results today: India Cements, Grasim Industries, JK Paper, Mahanagar Gas, ADF Foods, Balaji Amines, Barbeque-Nation Hospitality, Dalmia Bharat Sugar and Industries, India Cements Capital, JSW Holdings, Kanpur Plastipack, Karda Constructions, Ramco Cements, and Ramco Industries are some of the organizations that will announce their quarterly benefits today.