The 30-share BSE Sensex fell 588 factors, or 0.74%, to settle at 79,212, whereas the broader NSE Nifty declined 207 factors, or 0.86%, to finish at 24,039. In the course of the session, the Sensex plunged as a lot as 1,525 factors from its intraday excessive, whereas the Nifty dropped 518 factors from its peak.
Analyst Sahaj Agrawal, Senior Vice President: Head of Derivatives Analysis, Kotak Securities, interacted with ET Markets relating to the outlook on Nifty and Financial institution Nifty, together with an index technique for the upcoming week. Following are the edited excerpts from his chat:
What’s your view on Nifty and any key ranges that you just’d wish to share?
Markets have staged a powerful bounce again. Banking and NBFC outperformed whereas different sectors are step by step gaining momentum. We imagine earnings season together with world and geopolitical developments, are anticipated to maintain the markets unstable going forward. A broader vary for Nifty is seen at 22,000-25,500. Anticipate some consolidation earlier than the market offers a decisive breakout from this vary for a powerful directional transfer.
After a powerful rally in Nifty and the broader markets, some pullback is predicted. That is anticipated to be a constructive correction for additional gaining momentum to check the following main resistance degree of 24,800. Fast help for Nifty50 is seen at 23,800 – earlier resistance is predicted to behave as a powerful help zone.
I might additionally wish to have your view on Financial institution Nifty. And in addition, what are the important thing ranges to be careful for proper now?
Banknifty witnessed a really sturdy rally from 50,000 ranges to check highs of 56,000. Earlier resistance and the Breakout zone of 53,500-54,000 is predicted to behave as a powerful demand zone. Shopping for is advisable across the 54,000 market with help of 53,000 and on the upper facet, 56,000 could be examined.
What are your views on the IT sector now?
Respectable corrections appear throughout the sector. Worth is seen for the long run. From a buying and selling perspective, a short-term backside appears to be in place and the sector can stage a powerful up transfer from right here.
What’s the latest FII exercise suggesting?
FII segments have turned internet patrons within the money section. On the by-product entrance additionally the index lengthy publicity has elevated. We imagine sustained FII shopping for momentum is extraordinarily necessary for the markets to take care of momentum and cross increased barrier ranges.
Based mostly on the just lately concluded April Expiry, how ought to one strategy and commerce the Could collection with sectors that may probably outperform or underperform?
As of now Could collection suggests shopping for on dips. Robust help ranges are seen round 23,800 for Nifty50 and 54,000 for Banknifty.
Are you able to assist us know if there are some other sectors that you just may be taking a look at?
IT, Realty, and FMCG have underperformed. These sectors have the potential to achieve momentum and additional present help to the index.
(Disclaimer: Suggestions, strategies, views and opinions given by the consultants are their very own. These don’t signify the views of The Financial Instances)
