On the charts, Nifty looks poised to reach its all-time highs in the coming weeks. However, the rally could face some resistance amid mixed global cues and SGX Nifty sitting deep in the red on Monday morning.
Domestic equity markets soared higher in the previous trading week, as benchmark indices nearing their all-time higher. S&P BSE Sensex settled at 50,540 points on Friday while the Nifty 50 ended at 15,175. However, the upward march might face some resistance with Nifty futures on Singapore Exchange trading in the red on Monday morning. Global cues were also mixed during the early hours of trade. On the charts, Nifty registered a nine-week high at 15,190 on Friday and closed near it. “We observe an upside breakout of the downward slopping trend line at 14900, as per week’s close. This is a positive indication,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Global cues: Wall Street ended mixed on Friday with Dow Jones gaining 0.36%, while S&P 500 closed flat with a negative bias and the tech-heavy NASDAQ closed 0.48% lower. Among Asian peers, Shanghai Composite was up in the green while Hang Seng slipped into the red. Japanese stock markets were up with gains while South Korean Indices were in the red.
- SGX Nifty up, Q2 results, stocks under F&O ban, Nifty, Bank Nifty view: key things to watch out for
- F&O expiry outlook 28 Oct: Nifty support at 18060-18000; Bank Nifty to guide Nifty 50 this expiry week
- Sensex, Nifty end lower on F&O expiry day, Bank Nifty settles above 40000 for 1st time; Nifty support at 18000
Technical take: “A long bull candle was formed, which indicate a sharp upside bounce from the lower support,” said 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 monthly expiry, analysts believe Nifty could rally to previous 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,” said 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 previous week, Foreign Institutional Investors (FII) were net sellers of domestic securities. Meanwhile, Domestic Institutional Investors (DII) have continued their sustained buying 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 companies that will announce their quarterly results today.