Mumbai: The Indian equity market witnessed volatility last week as a potential slowdown in the US due to weak economic data and disappointing guidance from many companies is being feared.
Both frontline indices posted a loss in the last week. Nifty ended the week at 24,367.50, down 1.42 per cent, while Sensex settled the week at 79,705.91, down 1.58 per cent from the previous week.
Foreign institutional investors (FIIs) sold Rs 19,139.76 crore in the cash segment last week. However, Domestic institutional investors (DIIs) continued their buying streak, acquiring about Rs 20,871.10 crore in the cash segment in the last week.
The outlook of markets for the week will be influenced by various factors.
Bluechip companies like Hero MotoCorp, Hindalco and Apollo Hospital will present the results of the first quarter of the current financial year in the coming week. Apart from this, July inflation figures will also be released. Along with this, foreign institutional investor’s (FIIs) data and the price movement of crude oil will play an important role in deciding the direction of the market.
Arvinder Singh Nanda, Senior Vice President, of Master Capital Services said, “Nifty index has formed a Hammer candle on the weekly charts, indicating a potential further upside move in the coming week after a contraction of a thousand points from its life highs. The next resistance level is at 24,400, and if this level breaks, we could move towards 25,000.”
“On the support side 24,000 will act as a major support and if the NSE benchmark moves below this, we could see a fall towards 23,500,” he added.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart said, “Bank Nifty is trying to establish a base around its 100-DMA at 50,000 after a period of prolonged underperformance. The 20-DMA at approximately 51,200 will be a significant challenge for any potential bounce-back.”
–IANS
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