Nifty ended below 15,700 last week amid across the board sell-off; what should investors do on Monday?

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Indian markets ended the last week on a lower note with the Nifty50 slipping below 15700 levels. On Friday, the S&P BSE Sensex closed 182 points lower at 52,386, while the Nifty50 closed 38 points lower at 15,689. Benchmark indices were in the grip of bears following a weak trend in Asian stocks and investor confidence was shattered due to the global spread of Covid’s delta variant.

Selling pressure in banking, financial services and auto stocks weighed on the market and dragged the indices lower. The broader markets outperformed frontline indices as the Nifty Midcap 100 index gained 0.62% and Smallcap 100 index rose 0.54%

On the sectoral front, buying was seen in realty, metal, telecom, and healthcare while profit booking was seen in energy, banks, oil & gas, and IT stocks.

Foreign institutional investors (FIIs) net sold shares worth Rs 1,124.65 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 106.55 crore in the Indian equity market on July 9

Going forward, global cues will be key to track. Focus will be on upcoming Q1 FY22 results, on which market participants were already cautious due to the second wave of the pandemic.

HFCL, HMT, Steel Strips Wheels, Amit Securities, Dr Lalchandani Labs, Indbank Merchant Banking Services,  ISMT,  and Welcure Drugs & Pharmaceuticals will release quarterly earnings on July 12.

Investors’ interest is also likely to be more on new business IPO offerings like Zomato which is a highly anticipated issue and may hit the street this week.

Here’s how experts see markets trading on Monday 

Chandan Taparia, VP, Analyst-Derivatives ,  MOFSL

The Nifty50 formed a Doji sort of candle on the daily scale as it closed near its opening levels but made a Bearish candle on a weekly time frame.

The index has got stuck in a wider range of 15450 to 15915 levels from the last 28 trading sessions and a decisive directional move is missing in absence of follow-up activities.

Now, Nifty50 has to cross and hold above 15750 zones to witness an up move towards 15850 and 15915 levels while on the downside support exists at 15600 and 15500 levels.

Amit Trivedi, Yes Securities

After a gap-up opening in the week gone by, Nifty’s inability to close above 15,900 pulled the index back to 15,633 levels. Despite Thursday’s sharp fall, Nifty managed to settle above the prior week’s low. The appearance of a Doji candle on Friday indicated indecisiveness. Hence, further consolidation in Nifty is possible in the 15,600-15,900 zone.

Manish Hathiramani, Technical Analyst, Deen Dayal Investments

The Nifty recovered from the lows of the day but is still stuck in the range of 15400-15900. The index will scale higher if we cross 15900. The next target would be 16100. If we can keep above 15400 the overall trend of the market remains bullish. Hence it is imperative that the index does not break 15400 on a closing basis.