Aamar Deo of Angel One decodes Nifty mood, Adani Power and Nykaa strategy for next week

economictimes.indiatimes.com:

Investors should brace for more correction in the week ahead and watch out for a crucial support zone of 19,100-19,200 says Aamar Deo Singh, Head Advisory atAngel One while listing FII flows and currency movement among top triggers for the markets. He also suggests likelihood of profit booking in small cap and mid cap stocks after a strong rally over many months while spelling out his strategy on Adani Power, Nykaa and others.

What lies ahead for Nifty after posting back-to-back weekly declines? Nifty experienced its fourth consecutive week of losses, dropping 0.61% to end the holiday-shortened week while still managing to close above the 19,200–19,300 range. Investor unease may have been stoked by the surprise rise in inflation figures and worries about rate increases in the US and India.

As a result, profit-booking has been seen across industries, including index heavyweights. Technically, the markets needed a correction, and it appears that in the upcoming week, the support zone between 19,100 and 19,200 would be important to watch out for Nifty.

A zone of resistance would continue to exist between 19,500 and 19,600 on the upswing. Being ready for a turbulent trading week, especially with the technical indicators also pointing in that direction.With inflation fear acting as a spoilsport and results season literally over, where can the triggers possibly come from? Given the likelihood of rate increases in the US, markets have taken inflationary indicators into more consideration.