Market View: Week Starting 31st JUL 2017

Filed in Market Update by on July 31, 2017
Week Market View: Week Starting 31st JUL 2017
View Last week the NIFTY closed at 10014.50 registering a gain of 1% over previous week. The NIFTY finally scaled the historic mark of 10K. Good quarterly results lead to good volumes and heavy participation from all the players. Now the NIFTY could scale up further from here but at the current 10k mark and the huge rally that we have seen in the last couple of months, we expect NIFTY to take a breather here and consolidate. There is some real nervousness around the 10K mark as we were due for a correction and that has yet not come in the last 7 months or so. So a correction is definitely due and the pressure is mounting. However, if we get a rate cut from RBI, we could see a rally of another 250-300 points on the NIFTY. To fuel this rally further the markets would continue to need support from earnings because liquidity can only propel the markets to a certain level. We would need good earnings on a continuous basis and we don’t see a reason why that should not happen. This week we expect the NIFTY to consolidate and it’s likely to take a good support at 9900 and face resistance at 1100. Let’s not get overwhelmed by the correction phobia for now and have a stock specific approach. All the best!

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