Nifty: Fearful and clueless! Worries over deeper sell-off keeping Nifty bulls on edge

Signalling that the delicate financial state of affairs worldwide is making bulls not solely fearful but additionally clueless within the close to time period, the headline index Nifty ended increased by solely 80 factors this week. Market specialists say merchants are promoting at common intervals and any worrisome information may set off a large sell-off.

“Nifty has been caught in a broader vary for the final 15 buying and selling periods and has been witnessing elevated volatility. We count on the market to stay subdued with downward strain going ahead as international headwinds stay a key overhang,” Siddhartha Khemka, Head – Retail Analysis,

, mentioned.

The Sensex, which ended at 15,752.05 factors, shot up by practically 180 factors throughout the week to finish increased for the second consecutive week.

FMCG and steel shares had been among the many prime performers this week because the Nifty FMCG superior by 2.7 per cent and Nifty Steel by 2.1 per cent.

Amongst Nifty shares,

was the star performer this week because it went up by virtually 7 per cent, adopted by , L&T, and . However, , , and had been among the many prime losers within the pack.

“The current consolidation part signifies warning, citing the current fall within the international indices. We reiterate our view to deal with sectors/themes that are exhibiting resilience and attracting shopping for curiosity on dips. We like auto and FMCG among the many sectoral pack, whereas a rebound in power and steel could proceed to underperform. Members ought to align the positions accordingly,” Ajit Mishra, VP – Analysis,

Broking.

Yesha Shah, Head of Fairness Analysis, Samco Securities, expects the market to stay unstable as a consequence of a slew of market-moving occasions subsequent week. On the macroeconomic entrance, traders will likely be watching FOMC minutes to see the place the financial system is headed. Moreover, international markets can be influenced by China’s inflation figures, that are due subsequent week.

Technical Outlook

Nagaraj Shetti, Technical Analysis Analyst,

Securities, mentioned the short-term pattern of the Nifty continues to be range-bound. “However Friday’s sharp upside restoration from the lows hints at the potential for extra upside for the market forward. A sustainable upmove solely above 15,900-15,950 ranges may deliver bulls again into the market, and that would presumably pull the Nifty in direction of the following upside ranges of 16,200-16,300 ranges shortly. Quick assist is positioned at 15,630,” he mentioned.

(Disclaimer: Suggestions, ideas, views and opinions given by the specialists are their very own. These don’t characterize the views of Financial Occasions)