New Delhi: Market experts feel that Sensex should remain range bound with a positive bias next week. 10,940, 11,051 are two crucial resistances on the move up while for Nifty an important resistance lies at 3300.
Everybody’s, however, keeping their hopes pinned on the FOMC meeting next Tuesday.
Salil Sharma, Technical Analyst
Unable to cross 10940 is a sign of weakness
Market is trying to surpass the 10,940 levels but is unable to that and that is a sign of weakness. It had formed a double top at these levels around a month back and from there it had gone down. This has happened twice now and the volumes are also below the required levels now.
Upmove may not sustain if Sensex fails to close above 11000 for three days in a row
If something happens in the overseas markets, which helps us to overcome these levels, then maybe we could move up. However, the upmove may not sustain if the Sensex doesn’t close above 11000 for three days in a row. In the near term 10,940 is the crucial resistance.
On the downside the support initially will be at 10,600 and then at 10,440. The fact that it is not able to cross the 10940 hurdle and a few heavyweights, particularly Reliance, is not making for good signs.
Watch out for FOMC meet on Tuesday
The factors influencing the market will be the FOMC meet and FM’s statement on banks. Bank boards ceding to FM’s demand may not only be counter-productive for PSU banks but also for the entire equity market.
Sumeet Rohra, Antique Stock Broking
Profit booking in markets at higher levels
There was profit booking in markets at higher levels on Friday. Nevertheless, we have closed 250-300 points higher this week on a week-on-week basis. This can help us get ready for a big round next week if the US Fed gives some clear signals on Fed rate hikes.
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11051 is still a crucial resistance level to look out for
On the Sensex, 11,051 is still a crucial resistance level to look out for. Once we close above this level we will be headed towards 13,300 over the next 6-8 months. There is good support for the Sensex at 10,854 levels close to where we closed on Friday. The next support lies at 10,645. I don’t see these levels being violated in a hurry.
Market positions lightened on the eve of crucial non-farm US data
Market participants seem to have lightened their positions on the eve of crucial non-farm data from the US markets. This data can decide the course of interest rates going ahead. FII inflows, too have resumed and things look a bit rosy again.
We are seeing is a small knee-jerk reaction before the next up move begins
Key factors to watch should be tonight’s jobs data and overseas cues, which as of Friday evening look more or less positively poised. The rupee is steady at about 46.60-47. The markets though are digesting crude prices at $75 now. What we are seeing is a small knee-jerk reaction before the next up move begins.
Hitesh Sheth, Prabhudas Lilladher
Markets will be trading in a positive range next week
Markets will be trading in a positive range next week. Closing above 3200 or above 11,000 will be positive for the markets. For the Sensex 10,650 and for Nifty 3100 will be the support. Resistance for the Nifty is at 3300 and 11,300 for the Sensex. Market is moving towards 11,300 and can happen next week.
S P Tulsian, Investment advisor
Markets should remain cautious on account of FOMC meeting on Tuesday
Markets should remain cautious on account of FOMC meeting on Tuesday. If the US Fed does not hike interest rates by 25 basis points, which I think will happen, then the markets should shoot up by around 300-400 points on a weekly basis.
If they go for a rate hike then probably the sentiments may worsen further and the Sensex may fall more than the expected rise of 300-400 points.
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