Will Nifty give up 24,000 or make new highs this week? 7 factors to decide
Nifty may hold the 23,400-23,700 zone in case of profit-taking, while eyeing levels above 24,500.
Global cues, especially from the US, indicate a supportive outlook, with major indices continuing their upward trend despite intermittent consolidation.
«Investor attention was predominantly on large-cap stocks, resulting in underperformance of mid and small-cap segments. The IT sector especially showed notable recovery along with private banks which outperformed public sector banks in the banking segment,» said Vinod Nair of Geojit Financial Services.
Here are key factors that would determine Nifty's trajectory this week:
1) FII flows
Market data shows foreign investors bought Indian stocks worth over Rs 26,500 crore in June. «It appears that FPIs have realised that selling in the most performing market would be a wrong strategy. FPI buying can sustain provided there is no sharp upmove in US bond yields,» said Geojit's Dr. V K Vijayakumar.
2) Technical factors
Technically, a long bullish candle on weekly charts and breakout continuation formation on daily charts indicate a further uptrend from the current levels.
«We believe that the short-term market texture is bullish but due to temporary overbought conditions, we could see some profit booking on higher levels. For the trend, following traders now, 24,000/79,000 and 23,900/78,700 would act as key support zones. Above the same, the bullish sentiment is likely to continue. On the higher side, the market could rally up to 24,175-24,300/79,500-79,800. On the
