Anil Singhvi draws strategy for next week; says FIIs data will be crucial, advises investors to focus on cash market stocks
Stock markets closed in red on Friday as Nifty lost 38 points and Sensex shed 183 points to give a closing of 15,689 and 52,386 points respectively on the last day of the week.
Stock markets closed in red on Friday as Nifty lost 38 points and Sensex shed 183 points to give a closing of 15,689 and 52,386 points respectively on the last day of the week. Zee Business Managing Editor Anil Singhvi said one of the reasons behind this closing was the weakness in American markets, which had a poor trading session on Thursday. Though Dow recovered from the lower, but someone the weak session of 275 points led to this closing.
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However, Nifty closed near it support level of 15,700, while Bank Nifty too lost about 200 points but managed to hold the crucial level of 34,000, said the Market Guru. " There was weakness in the broader market, but not panic. Small cap, mid cap shares saw buying from the bottom levels. There has not much changed, besides a little weakness on closing basis. It is regular a correction of 300 points in Nifty between 15,600 and 15,900. Next week will be crucial from results point of view, FIIs data and global market perspective," he said.
Two positives from Indian markets point of view are that Dow Futures were up 150 to 175 points during closing of the Indian markets on Friday and China has also reduced the reserve requirement ratio by 0.5 percentage point. "On Monday, we can get advantage of smart recovery in the Dow Futures. From domestic point of view, FIIs data will be crucial. It will be interesting to see if selling pressure comes down from FIIs or not. Second is call-put ratio. call-put ratio is in oversold territory and that can also support the Indian markets on Monday, however, FIIs data will be make or break," said Anil Singhvi.
For Nifty crucial support will be 15,575 and 15,625, while it will attempt 15,725 to 15, 825. As far as Bank Nifty is concerned, 34,600 to 34, 800 will act as strong support and on the upper side 35,400 to 35,600 will pose some resistance. "Broader market will see action on Monday and the entire week. There is no sign of weakness in cash markets stocks and that is where investors should focus," the Market Guru added.
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