Sensex, Nifty next week: RIL AGM, key levels and other cues to watch out for

Stock Market

Indian market indices Sensex and Nifty ended decrease on Friday however ended the week about 1.5% greater, extending features to the fourth week. The NSE Nifty 50 index closed at 10,768 on Friday whereas BSE Sensex settled at 36,594. Markets began the week on a promising word however blended cues capped motion because the periods progressed. In between, volatility remained excessive as home markets continued to dance on the tune of world friends and growing COVID circumstances worldwide saved markets on edge, say analysts.

For the upcoming week, analysts will concentrate on the bulletins at Reliance Industries 43rd Annual General Meeting, scheduled on July 15. On Friday, RIL shares settled at a report closing excessive once they gained 3%.

“Given by recent past records, RIL’s AGM improves the mood of its stock price and given the huge weight in index, markets too are expected to remain on a higher side unless negative global cues spoil the RIL AGM party. This time it is expected that the AGM would garner maximum viewership given the slew of deals cracked for Jio Platforms,” stated Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote.

Also throughout next week, many firms, together with Infosys, Wipro and HCL Tech will announce their earnings.

Dalal Street next week – Here is what analysts anticipate

Ajit Mishra, VP – Research, Religare Broking Ltd.

“On the outcome entrance, we had IT main, TCS, which reported subdued Q1FY21 numbers largely impacted by COVID led lockdown. Further, administration was assured as they said that the impact of the pandemic on the enterprise is bottomed out and the corporate would begin seeing restoration from Q3FY21 onwards.

In the approaching week, individuals will first react to the macroeconomic information and then focus would once more shift to the earnings bulletins. Needless to say, world cues and updates associated to COVID-19 may even stay on their radar.

We’ve been seeing a gradual restoration, following upbeat world markets and favorable native cues. However, the priority associated to rising COVID-19 circumstances in India and aboard continues to be lingering, and that, in flip, affecting the tempo of financial actions.

We recommend limiting aggressive bets at present levels and awaiting readability over the next directional transfer. As of now, the Nifty index is probably going to commerce inside 10,500-10,950 zone next week and anticipate volatility to stay excessive on the stock-specific entrance. We advise merchants to hold current leveraged positions hedged whereas buyers ought to concentrate on upcoming earnings bulletins for cues.”

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking

“It is difficult to imagine however the Nifty gyrated in a slender vary of merely 160 factors throughout the week. In the midst of all this, the Nifty concluded the week with average features of 1 and half % features.

It’s been a stellar Bull run for our markets for the reason that March lows and markets by no means regarded again to attain the essential zone of ‘200-SMA’ on day by day chart. The type of torpid exercise we witnessed within the week passed by was fairly evident, as a result of the market has seen a relentless transfer with none main halt in between and has reached such a vital junction. Firstly, as talked about the key shifting common of 200-SMA on a day by day chart. This coincides with the Weekly 89-EMA in addition to month-to-month 20-EMA and therefore, the bulls had to respect them. Ideally, if the market has to right, that is the proper zone from the place it will probably. In truth, we had clearly advocated reserving earnings within the ongoing rally within the zone of 10700-11000 and we proceed to accomplish that not less than for momentum merchants.

“But by no means, we advise going short on the market because the momentum in individual stocks is still strong and importantly, we are seeing a consensus opinion about the market correcting from current levels. As we all know, when everyone expects a fall, it never comes and vice versa. So, in our sense, the Nifty would first surpass the 10850 mark and head towards the 78.6% retracement zone of the entire fall i.e. 11000-11200, where we can actually see some profit booking taking place. If consensus view has to fail, this possibility cannot be ruled out.”

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

“The short term trend of Nifty is range bound with weak bias. The overall daily/weekly chart pattern indicate a possibility of reversal in Nifty around 10800 levels in the coming week. Beginning of decline from the highs is likely to bring bears into action. Important supports to be watched for the resumption of weakness is at 10700. Any upside bounce could find stiff resistance around 10800-10850 levels.”

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