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16 October, 2021 21:13 IST
If Nifty holds above 15,750, it may hit 16,000: Siddhartha Khemka
Source: IRIS | 29 Jul, 2021, 08.18PM
Rating: NAN / 5 stars.
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Indian equity opened gap up on day of monthly expiry and consolidated in a narrow range despite the profit booking of last three trading sessions. Positive global cues and strong momentum in metals supported the markets today. Nifty/Sensex gained 69/209 points (+0.4 each) to close at 15,778/52,653. The broader market outperformed with Nifty Midcap 100 and Nifty Smallcap gaining ~0.7%/0.9% respectively. Sectorial indices were mixed bag with Metals leading the pack with gains of 5%, followed PSU Bank (+3.3%), Realty (+1.6%) and IT (1.4%). Media, Banking and Financial service gained in range of 0.4%-0.8%. However, profit booking continues in FMCG (-1.0%), Auto (-0.4%), Pharma (-0.3%) and Energy (-0.2%). The volatility index, India VIX fell by 5.5% at 12.95 levels.

Global markets finally ended its losing streak and stabilized after favourable outcome from US Fed meeting. European stocks hit record high on the back of strong earnings from commodity majors and Airbus. Asian markets too rallied amidst reports that Chinese regulator is likely to be more cautious about market impact before introducing new policies in future.

Taking support from Asian markets, domestic indices opened positive and traded firmly. Momentum in Metal stocked continued today after news reports suggested that China is looking at imposing another export tariff on Steel products. Metal stocks like Tata Steel, Jindal Steel, JSW Steel, SAIL witnessed smart rally. Aluminum stocks too were in limelight today after US Aluminum major Constellium reported strong results and increasing its profitability forecast for the year.

Technically, Nifty formed a small bodied Bullish candle on Daily scale and negated its lower highs of the last three sessions. "Now, it has to hold above 15,750 zones to witness an up move towards 16,000 levels while on the downside support exists around 15,650 levels," opined
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

"Overall, the result season so far has been healthy and is providing g support to the market. So far 25 Nifty companies have declared their results with their aggregate Sales and PAT being up 46% and 71% YoY respectively. Cement, Consumer Durables, Metals, Oil & Gas are some of the sectors which have reported better than expected numbers while Consumer, IT, Private Banks, Pharma numbers were largely in-line. This has helped the market to largely sail through the headwinds of a possible third COVID wave, commodity led inflation and volatility around the US Fed taper talk," he added.

"The primary markets continue with flurry of activity as two IPO closing this week and several more lined up for next week. Current valuations, while not expensive demand consistent earnings delivery v/s expectations for further outperformance. While the Index may be trading in a tight range, the gradual opening up of the economy and an improved demand backdrop do offer bottom-up opportunities," Khemka further added.

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